This will be the first time that we analyse. As we have seen in most of the crypto assets, Algorand has almost the same structure. The weekly chart indicates below that the 5 Elliott Wave structure in the blue pattern has ended at the beginning of 2022. We can clearly interpret the correction structure of ABC where the possible A pattern is almost completed and expected to be followed by the corrective wave of B. A wave can hit the $0.27814 Fibonacci 50% Level and a reversal can be expected. B Wave is an uptrend but part of the corrective wave and the $1.80 level is a critical point for ALGO.
We need to make sure that we have weekly candle closes above $1.80 - $2.0 levels before talking about the bullish structure for ALGO.
Daily and weekly wave trend indicators also support the B wave reversal since they are in the oversold area where it is trumped by the monthly indicator which is bearish. This means that we can see the B wave reversal however, the retest (C Wave) is likely to occur before talking about the bullish trend. Fibonacci levels indicate after the corrections ALGO can target $2.7 and $18 with the 261.80% Fibonacci level.
RSI levels currently are not strong in daily and weekly charts. Below 50% RSI indicates the weak status for an instrument therefore, it is expected first to see a move above the 50% level in the daily charts. Algorand doesn’t have sufficient historical data for Monthly RSI as well as the wave trend to check and make an analysis of the monthly structure.
As always, Important Note: None of the targets represented here is financial advice. Do your research in due diligence and take responsibility for your actions when buying or selling an instrument.