ALGO/USD broke a weeks-long downtrend a few days ago!
Will it translate to sustained buying pressure for the blockchain token?
Here’s what I’m looking at today:
ALGO/USD: 1-hour
ALGO, token for Layer 1 blockchain project Algorand, extended its 2022 downtrend at the start of March when traders started taking profits from their “riskier” bets amidst military tensions in Ukraine.
ALGO/USD found support at the .6800 – .6900 area, though, thanks in part to the risk environment being more favorable to cryptos in general.
What makes ALGO/USD’s chart interesting is that it has just broken above a trend line resistance on the 1-hour chart.
More importantly, it has just bounced from a new trend line support just as the 100 SMA crossed above the 200 SMA.
Are we looking at a short-term uptrend in the making?
Just this week we learned that file-sharing platform Limewire has chosen the Algorand blockchain to launch its NFT marketplace with.
Real estate company Lofty has also just partnered with Algofi – a decentralized lending protocol built on Algorand – to accept Algofi’s native stablecoin $SBTL as collateral so that users can buy fractional NFTs (which represent pieces of real estate). That’s the first time people can use cryptos as collateral to own real estate properties!
The risk-friendly trading environment can highlight the latest pro-ALGO news and give ALGO/USD its bullish momentum.
Already ALGO/USD is approaching the .7800 range resistance after bouncing from the .7300 trend line support.
Look out for sustained trading above .7800, which could lead to retests of inflection points like .8000 or .8450.
