ALGO and FIL: Altcoin Analysis for December 21, 2023
Yesterday's inability of Bitcoin to firmly hold above the $44,000 mark brings us to an analysis of the market situation for alternative coins Algorand (ALGO) and Filecoin (FIL) as of Thursday, December 21.
Algorand (ALGO)
Since mid-October, ALGO has been trading in an active upward trend, appreciating by 140%. However, the positive momentum in Algorand has recently slowed down, and the asset has been trading sideways for the past two weeks.
The current resistance zone for ALGO lies between $0.210 and $0.223. If buyers manage to break through this range, the next target will be the $0.23 level, which could pave the way to new highs. However, this is contingent upon avoiding a deeper correction in BTC, as the correlation between these assets remains significant.
In the event of continued retracement, ALGO might retest support zones between $0.173-$0.184 and $0.150-$0.640. In case of a deeper correction, it could reach down to $0.133.
ALGO chart on the H4 timeframe
Filecoin (FIL)
Filecoin continues its upward trajectory, recently setting a local high at $6.2. However, to reach its annual high, FIL needs to appreciate an additional 75%.
Such a scenario is feasible if the upward trend continues, including in Bitcoin's performance. The immediate task for buyers is to consolidate the assetβs price above the resistance zones of $5.61-$5.94 and $6.2.
Should FILβs correction deepen, the coin might drop to buyer zones at $4.83-$5.08, $4.18-$4.50, and $3.94. The depth of any further decline will also depend on the BTC trajectory.
FIL chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the price movement between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K β $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
