ALGO/BTC: Breakout Confirmation for the Long Term 1D (Aug. 11)

X Force Global Analysis:


If you find our analyses to be helpful, make sure to support us by dropping a ‘like’


In this analysis, we take a look at Algorand (ALGO)'s daily chart, assessing its bullish probabilities.

Analysis

- To begin with, it's important to note that we have broken out of a descending trend line resistance that had been suppressing prices for over a year
- After a breakout, we have had a pullback, retesting the now support-turned-resistance
- We have managed to close above the 0.236 Fibonacci retracement support
- The Simple Moving Averages (SMAs) are all aligned in the order of: the 20 SMA, 60 SMA, and 100 SMA

What We Believe

Just as many other alts that have broken out of major descending resistance trend lines, ALGO demonstrates a high potential upside in a bull market.

Let us know what you think in the comment section below


Trade Safe.

Comment:

On the shorter time frame (4 Hour Chart), we can see the smaller picture of the current situation.

- Bulls have managed to secure the 0.382 Fib support
- Prices have moved back up above the 0.236 Fib support
- The extended bearish divergence has played out, in which priced created higher highs while the RSI created lower highs
- An Adam and Eve pattern has played out to test the local top

While the trend seems to have lost temporary trend strength and momentum, the larger picture remains intact for the bullish trend.

Trade closed: target reached:

After retesting support zones during its pullback, Algo has broken out to form new highs for this year.

The altcoin has broken its 0.618 Fibonacci retracement resistance on the daily, as it looks to close above significant resistance levels.

This setup was a classic example of how to trade breakouts:
We look for confirmation of a breakout, wait for a pullback, and enter when the asset (or altcoin in this case) retests support levels.

Trade safe.