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HomeCrypto NewsMarketMarket Analyst Projects a 5,543% Algorand Price Rally to $7.5 Amid Elliott Wave Formation

Market Analyst Projects a 5,543% Algorand Price Rally to $7.5 Amid Elliott Wave Formation

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Prominent market analyst EGRAG sees Algorand (ALGO) skyrocketing 5,543% to an ambitious price of $7 amid the formation of a new Elliott Wave structure on the weekly timeframe.

EGRAG disclosed this ambitious price target in his latest Algorand analysis today. He called attention to the formation of a bullish W pattern on the weekly chart, with ALGO seemingly looking to record the second part of the W in price trajectory.

The formation of this W pattern aligns with an Elliott Wave pattern recorded by the asset. Interestingly, the first part of the W structure saw Algorand register massive gains. This bullish momentum materialized in early 2020, nearly a year after the launch of the protocol.

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A Multi-Year Rollercoaster Ride 

Algorand had dropped to a low of $0.1020 in March 2020. However, the asset observed a five-wave structure afterward, hitting a high of $2.8200 in November 2021 upon completing Wave 5. This represented a 2,664% increase in 20 months. The surge coincided with the 2021 bull run.

Nonetheless, the bears took control of the scene shortly after the $2.8200 high. As a result, Algorand recorded a corrective ABC pattern that extended into this year. Following the ABC correction, ALGO dropped to a low of $0.0889 in September of this year. 

Notably, EGRAG suggested as ALGO has begun forming the second part of the W pattern, if it continues to shape it, this will indicate that the ABC correction has concluded. The analyst stressed that ALGO will now look to start a new five-wave structure, similar to the one from 2020 to 2021.

Algorand Poised to Hit $7.5

Data from EGRAG’s chart reveals that the structure will feature three bullish waves and two corrective waves. The first wave would see ALGO rally to $0.50, while the second wave would trigger a correction back to $0.25. However, Algorand could surge to $3.13 upon completing Wave 3.

Algorand Price Chart EGRAG Crypto
Algorand Price Chart | EGRAG Crypto

Following Wave 3, EGRAG’s chart suggests that the fourth wave would cause another retracement, resulting in a drop to $1.30. Nonetheless, this correction would be short-lived, with Algorand eventually rallying to the $7.5 price target when it completes Wave 5. This would result in a new ATH.

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What solidifies EGRAG’s conviction of such a rally is ALGO’s position in relation to the 21-week exponential moving average (EMA). The analyst confirmed that Algorand has closed two consecutive weeks above the 21 EMA for the first time since November 2021.

ALGO currently trades for $0.1329, up 2.39% over the past 24 hours, as it rides on the bullishness in the broader market. The asset witnesses a 12% drop in volume to $37,424,339. At its current position, Algorand would need to rally 5,543% to claim the ambitious $7.5 price target. 

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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