• ALGO price action shows bullish momentum holding above the 200-day EMA.

  • A rising 50-day EMA indicates a strong likelihood of a golden cross.

  • If the uptrend maintains momentum, ALGO price could break above the 200-day EMA.

With the U.S. SEC’s upcoming decision on a Bitcoin ETF, the leading cryptocurrency has shown the sustainability of its $36,000 mark. Therefore, ALGO price bounced off the $2.3 support (Morningstar Index), signaling a strong return as the altcoin market returns to its bullish trajectory.

As a result, the rising price continues to form a bullish reversal pattern, known as a round bottom. The analysis heralds a trend reversal, suggesting that ALGO prices will begin a new recovery phase, with ALGO price forecasts signaling an optimistic recovery.

Algorand coin has seen a sharp recovery over the past month, with the price jumping from $0.0877 to $0.148, a total increase of 69.2%. During this rally, the coin price broke out of the 100-day corrective trend dominated by a descending channel pattern.

The post-breakout rebound and broader market recovery have pushed Algo price to a four-month high of $0.1452. Furthermore, this ongoing recovery is developing into a round bottom pattern on the daily time frame chart.

Furthermore, the chart pattern reflects a clear shift from a general downward trend to a sustainable recovery. Additionally, ALGO price should extend its recovery to $0.03, which marks a potential upside of 108%.

Therefore, a bullish break above the $0.3 handle would be a better indication of a new uptrend.

Technical indicators:

RSI Indicator: The daily RSI line continues to move in a sideways trend approaching the overbought border.

EMA: The rising 50-day EMA shows a high likelihood of a golden cross with the 200-day EMA.

Can ALGO price gains sustain above the 200-day EMA?

Amid the ongoing recovery rally, Algorand token price has shown three corrective phases aiming to resume bullish momentum. None of the three pullbacks closed below the 38.2 Fibonacci retest level.

Therefore, if the expected rally from the bullish pattern occasionally pulls back, holders can mark either the 38.2% retracement level or the 58% retracement level as cover/stop loss.

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