Understand the action of prices on the cryptocurrency market: focus on the algorands (algo)

The cryptocurrency world has experienced rapid growth and fluctuation in recent years. One of the key factors stimulating this growth is the growing demand for digital currencies, as more and more people are aware of their potential to provide a secure and decentralized means of storing the value and making transactions without the need for intermediaries like banks.

However, navigating in the complex world of cryptocurrency can be intimidating, especially when it comes to understanding the action of prices. This is where technical analysis plays a crucial role in enlightened investment decisions. In this article, we will focus on Algorand (Algo), a decentralized public blockchain and a consensus algorithm of evidence of put into play which has gained ground on the cryptocurrency market.

What is price action?

Price action refers to the real price movement of a digital asset over time. It is the final result of all professions, purchases and sale, which take place on various scholarships, including scholarships, term markets and cryptocurrency scholarships. To understand the action of prices, you must be able to identify models, trends and other market indicators.

Algorand (Algo): a decentralized blockchain

Algorand is a decentralized public blockchain developed by R3, a software company based in Switzerland. It was launched in 2017 as an alternative to traditional blockchain platforms like Bitcoin and Ethereum. Algorand’s blockchain is designed to be more efficient, scalable and secure than its competitors.

Key characteristics of Algorand

Certain key features that distinguish algorand from other blockchains include:

* Consensus Assistance Consensus Algorithm : Instead of relying on complex consensus mechanisms such as work proof (POW) or Assistance Proof (POS), Algorand uses a Simpler and more energy -efficient algorithm called proof of bet.

* Treatment at high speed : Algorand blockchain is designed to treat transactions at speeds comparable to those of traditional financial systems.

* Evolution : Algorand’s consensual algorithm allows faster and cheaper transaction treatment than traditional blockchains.

Understand the action of prices on the Algorands

When analyzing price action on algorands, traders and investors can use various technical indicators to identify trends, models and other market signals. Here are some key points to consider:

* Identification of trends : Traders can look for long -term trends in the price of the algo, such as the upward or downward momentum.

* Levels of support and resistance : Identify areas where prices tend to bounce back or stall, which can be useful for establishing trading strategies.

* Haussiers and lowering indicators : Look for technical indicators such as the relative force index (RSI), Bollinger bands and mobile averages to assess the strength of trends.

Indicators and graphics

Certain popular indicators used in the analysis of the action of algorands prices include:

* Mobile average

: Traders use different types of mobile averages (for example, the simple mobile average (SMA) and the exponential mobile average (EMA)) to identify trends and predict future price movements.

* Relative force index (RSI) : a momentum indicator which measures the magnitude of recent price changes to determine the conditions of overview or occurrence.

* Bollinger bands : a volatility indicator that draws a mobile average strip with standard deviations, providing an overview of price movements.

Models and trends in the graph

Traders can search for graphic models like:

* Triangles : Haussiers models that form when prices move in a coherent direction while showing signs of force.

* Waves : cyclical models where the price moves in a direction while retracing or diverging.