Technical role role in ALGORAND (WAG) Evaluation
Cryptocurrency has experienced a significant increase in value in recent years, with some active growth in explosive growth, while others have suffered significant losses. Among these cryptocurrencies are Algorand (Wages), open source, a widespread ledger platform that uses the evidence (POS) unanimity algorithm to secure its network. In this article, we will study the role of technical evaluation in the assessment of the market value of Algorand and discuss how investors can use technical analysis to inform about their investment decisions.
What is Algorand?
Algorand is an open source cryptocurrency launched by a New Zealand expert group in 2017. It is designed for quick, safe and energy efficient, making it an attractive opportunity for users looking for a reliable digital currency. The platform’s unanimity algorithm, known as the impression of Sphincs (synchronous hashed), uses a new approach that eliminates the need for central authorities, making Algorand a decentralized alternative to traditional blockchain.
Technical evaluation and hiring
Technical value plays an important role in assessing the market value of Algorand. Technical analysis includes various charts and metric tests to identify price movement patterns and trends. In this context, the technical assessment is used to assess the underlying factors that cause active price behavior.
Algorand market capitalization (market border) has increased continuously over time, reaching approximately $ 2.5 billion in December 2020. This means a significant increase in initial market capitalization of approximately $ 100 million in January 2017. To introduce it in the perspective, the market value of Algorand is now more than 25 times higher than the original market limit.
Technical indicators and models
Several technical indicators can be used to assess the performance of hiring and identify possible trends or revolutions. Some of the remarkable examples are:
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variable average : These are variable average indicators that smooth out price fluctuations, allowing you to identify long -term trends. In the case of Algorand, the 50 -day variable average (MA) is currently flying about $ 2.20, but the 200 -day MA is about $ 3.00.
- The Relative Strength Index (RSI) : This indicator measures the price pulse, comparing the active closure price with its price range for a specified period of time. Reading above 70 indicates an excessive condition, but one below 30 indicates the sale. In the case of Algorand, RSI is currently around 25, stating that the market was up.
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Bollinger Strip : These bands depict a measurement of volatility, where the prevalence between the upper and lower bollinger bands is used to evaluate the price movement. A narrow band indicates a rigid range of volatility that suggests that active can be upward.
Inverted model
In the Algorand diagrams you can identify multiple speed models, including:
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Head and shoulder : This model consists of three peaks followed by a lower peak indicating a possible coup.
- Triangle Model
: The trianga model is formed when the price moves in one direction, then reverses and forms a new higher or lower lower level.
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Guppy Model : The Guppy model has a long wave that begins up and ends with a similar move.
Investment strategies
By evaluating the market value of Algorand, the technical assessment can inform investment strategies in several ways:
- Signal Buying : Identify possible buying options when prices form head and shoulder or triangular pattern.
- Sale Sales : Look for sales signals when the RSI indicator falls below 30, and Bollinger Bands prevalence is wider than usual.
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