Time to Buy Solana (SOL) and Algorand (Algo) Soon, As They Come Down After the Surge
We're preparing to buy Solana (SOL) and Algorand (ALGO) after this pullback ends
The bullish momentum in the crypto market slowed since the middle of August, but some cryptocurrencies have exploded during this time. One of them is Solana which has been one of the most bullish cryptocurrencies out there for the past month or so, while the other one is Algorand, which has exploded in the last few days.
Solana Price Prediction – SOL/USD Retracing After the Surge
Solana was trading around $20 by the middle of July, as the crypto market was on a bearish period. It turned bullish back then and slowly made its way higher, doubling in value after reaching $40 by the middle of August when the bullish trend picked up pace.
SOL/USD has been exploding higher since then and yesterday it peaked at $216 on my crypto broker platform. Moving averages were doing a great job in providing support and pushing the trend higher for Solana. The trend picked further speed since the last week of August, and smaller moving averages such as the 20 SMA (gray) and the 50 SMA (yellow) were the ones to provide support.
Today though, we are seeing a pullback lower, after yesterday’s candlestick closed as a doji/hammer, which is a reversing signal after the increase. According to this chart, the decline should end at the 50 SMA, after the 20 SMA has been broken on the H4 chart. The 50 SMA comes at around $160, so we will watch the price action when it gets at that level. If it forms a bullish reversing pattern, then we will try to open a buy SOL/USD signal.
Algorand Price Prediction – ALGO/USD Gives Back 1/3rd of the Gains
Should we buy ALGO/USD at the 20 SMA?
Algorand was trading just above $1 on Tuesday after it dived from around $1.50, when it suddenly reversed and started surging higher. The surge started at the 200 SMA and yesterday in the afternoon ALGO/USD was trading at $2.4860s. Although today we are seeing a retreat in the entire crypto market, which has sent Algorand down as well. But, it seems like the 20 SMA has turned into support again, as sellers are having doubts at this moving average.
Will the previous resistance at $1.75 turn into support?
On the weekly chart, Algorand formed a double top at $1.75 and retreated down during the crash in the crypto market. The 20 SMA held as support for a while but it was eventually broken. But, the 50 SMA (yellow) took over and stopped the decline. This week ALGO/USD surged higher after the 20 weekly SMA (gray) was broken, although the price is retreating at the moment. We are also thinking about Algorand at the previous high of around $1.75, which should turn into support now. You can follow if we will take this trade on our forex signals page.
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