Algorand price at risk of 9% downturn with quadruple witching underway
|- A single trend line supports Algorand price action.
- ALGO price looks set to break down 9% towards the low of 2022 at $0.6707.
- Expect to see bears eke out a loss by the US closing bell as tail risks become headwinds.
Algorand (ALGO) price action is at the cusp of going into the weekend booking a loss as price is at risk of falling, anda short-term trendline is the only handle providing support. As price action refrains from making new highs, pressure is mounting from bears against the trend line, and as headwinds emerge yet again, a break could see a nosedive move into the late US session, as investors try to erase any risk going into the weekend. A return to the low of 2022 near $0.6707 is possible, which would mean a 9% projected loss.
Algorand price action sees bears trying to rip down a technical wall
Algorand price action is seeing a reverse in tone and sentiment as a solid technical pattern gets distorted. For three consecutive days, Algorand price action bounced off a supportive trend line and, in the process, made a new intraday high each time. Today that pattern is broken with a lower high and bearish pressure mounting.
ALGO price action is under siege since overnight headlines changed the background in which price action is moving. Several tail risks are suddenly set on the forefront with a considerable systemic risk this evening from the Biden-Xi meeting. This is set to happen after the close of the European session during the US session, which will be undergoing a quadruple witching, further weighing on the overall price action in global markets. Expect a clear break and quick nosedive, with a drop towards the monthly S1 at $0.6707 and possible minor overshoot printing new lows for the year.
ALGO/USD daily chart
Bulls are in desperate need of some positive headlines, that could still come in if a sudden peace deal is brokered or the outcome of the Biden-Xi meeting proves to be positive. That could see a pop in price action towards $0.80, eking out an 8% gain before heading into the weekend. In tandem with the stock markets, a close above would help set the tone next week, targeting $0.8679 that is currently coinciding with the 55-day Simple Moving Average as the next price target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.