Trendline Breakout May Push ALGO Price Beyond $1

On April 29th, the Algorand(ALGO) price gave a decisive breakout from multi-month support of $0.668. The following recent phase was meant to provide a short-entry opportunity, but the fresh news of the FIFA and Algorand partnership has pumped the coin price by 15% on the intraday level. This price jump has pierced some crucial resistance, signaling an upcoming recovery rally. 

Key points:

The daily-RSI slope is soon to enter the bullish region
The ALGO price breached the 20-day EMA dynamic resistance
The 24-hour trading volume in the Algorand coin is $716.6 Million, indicating a 397% gain.

Source-Tradingview

Since the November 2021 bloodbath, a descending resistance trendline has hammered down the ALGO buyers’ attempts to establish a significant rally. Furthermore, the traders actively responded to this dynamic resistance and kept selling on occasional pullbacks.

Moreover, on April 29th, the buyers submitted to the broader market sentiment they lost the crucial support of $0.688.As a result, the ALGO price plunged 18% to retest the immediate support of the $0.54 mark.

Furthermore, the coin price reverted to the $0.668 flipped resistance to validate the bearish breakout. However, the partnership announcement brought significant buying pressure and surged the coin price by 15%.

The sudden price jump breached two important levels, i.e., $0.668 and a long-coming descending trendline. If the buyers sustain this breakout, the altcoin will pump another 8% to rechallenge the $0.8 mark, followed by $1.

Technical indicators:

EMAs: The ALGO price trading below the 50-100-and-200-day EMAs indicates an overall downtrend. However, along with $0.668 resistance, the coin price also reclaimed the 20-day EMA, reflecting an early sign of recovery. 

Relative Strength Index: The Daily-RSI slope barely tagged the oversold region on April 30th and reverted with a sudden pump to the midline.

Resistance levels: $0.1, $0.116
Support levels: $0.72 and $0.53