CoinTrade Staking Launch Fuels Algorand Price Speculation

The launch of staking on Japanese crypto exchange CoinTrade has generated excitement for Algorand (ALGO). On June 17th, CoinTrade announced that it would offer a 4.4% annual percentage rate for staking ALGO.

However, technical analyst Chart Nerd notes that the token is still in a long-term downtrend, with a massive falling wedge forming from the 2021 highs. According to Elliot Wave Theory, a fifth wave downward to $0.057 is possible, which could result in a bullish breakout from the wedge.

Despite this, ALGO has been experiencing oversold conditions on its charts, which could lead to a bounce. The token's recent retracement below the $0.10 support level saw a bounce over the past week, with the MFI falling into oversold territory but climbing back towards the neutral zone.

Traders are advised to wait for a bounce before selling, as clearing the $0.105 resistance zone could indicate a move as high as $0.128 is possible based on retracement levels.