- Algorand trades above the 20/50 SMA after a 60% April rally, with bulls watching the golden pocket for a possible trend reversal.
- Strong support at $0.1501 and rising volume reinforce ALGO’s bullish structure, hinting at a potential higher low in development.
- ALGO’s consolidation near resistance and interaction with flattened moving averages signals a key moment for bullish continuation.
Algorand ($ALGO) surged over 60% in April before entering a healthy retracement phase. Currently, the asset trades at $0.2160 on Binance, sitting just above key moving averages. Traders now eye the golden pocket between the 0.618–0.66 Fibonacci zone as a potential reversal point. This level could decide whether Algorand resumes its uptrend or faces renewed selling pressure. TAs a sign of ongoing positive momentum, the 20 and 50 Simple Moving Averages (SMA) are currently below the current price.
Furthermore, Algorand has demonstrated tenacity following its recovery from solid support at $0.1501. The recent rise was initiated from this level of support. Consequently, price action has pierced through previous resistance levels, including $0.1795 and $0.2003. These zones, which earlier capped upward movement, now add to the structure of support. Additionally, the minimal spread between current buy and sell orders confirms strong market interest and liquidity.
Moving Averages Signal Strength
The SMA 20 stands at $0.2062, while the SMA 50 rests at $0.1951. Both indicators position below the current price. Hence, they confirm short-term bullish control. Besides, the recent interaction with the yellow SMA 50—now flattened—suggests a possible shift in market direction. When price tests a flattened moving average, it often leads to breakouts or breakdowns.
Source: Quinten
Earlier in the cycle, the SMAs displayed a bearish crossover. The faster SMA 20 dipped below the slower SMA 50 during the last downtrend. However, this phase ended after Algorand found support at $0.1501. Since then, the recovery has been structured and supported by rising volume.
Golden Pocket Could Confirm Higher Low
The Fibonacci retracement zone between 0.618 and 0.66 remains critical. Holding this level could result in a higher low formation. Moreover, converting the 20/50 SMA into solid support would strengthen the bullish outlook.
A higher low here would not only confirm trend reversal but also reinforce investor confidence. Besides, the current consolidation between $0.2404 and $0.2628 adds to the technical intrigue. With a white arrow indicating a potential continuation pattern, traders stay alert for breakout signs.
