Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
A few days ago, FIFA announced[1] Algorand[2] to be its official blockchain[3] to empower “the global football community with cutting edge, sustainable technology”. This could boost its reputation in the mainstream and drive adoption. The announcement could have driven a rally on the price charts toward $0.73, but in the days to come, can ALGO climb higher?
ALGO- 1 Hour Chart
Source: ALGO/USDT on TradingView
As April drew to a close, the trend of the coin was downward. In May, combined with the FIFA announcement and a bounce from the $0.58 support level, a rally to $0.73 was seen. So what is the market structure like?
In short, bearish, since ALGO was forced to dip back beneath the $0.65 support level. Since that surge, lower highs have been registered as well. The VPVR tool also highlights how most of the visible range’s trading volume occurred between the $0.655 to $0.724 levels, which are the Value Area Lows and Highs respectively. The Point of Control stands at $0.665, which was comfortably below where ALGO was trading at press time, and could act as support on a move downward.
Doesn’t the early May rally mean that buyers are in control? Yes, they were, for a short while, until they faced rejection at $0.73. Therefore, a retest of the Value Area Highs can be used to enter a short position.
Rationale
Source: ALGO/USDT on TradingView
The RSI was above the neutral 50 line, but the movement of the RSI over the past week resembles a range rather than a trend. Considering the aforementioned VAH/VAL points, there is an indication that ALGO is not
