Why the Algorand price could be on its way south to wipe out early bulls
|- Algorand price shows rejection from a critical barrier, which could entice a sweep of 2020 liquidity levels.
- ALGO price could decline towards $0.17, a 20% loss in market value.
- A daily candlestick close above the 8-day exponential moving average at $0.228 is needed to invalidate the bearish scenario.
Algorand price has enjoyed a surging uptrend rally that may be coming to an end. A 20% decline and possible sweep-the-lows event stand a fair chance of occurring for the scalable blockchain token.
Algorand price headed south for the winter
Algorand price rose nearly 40% since January 1 in a rocket-like manner to hit a high of $0.2418 on January 16. The uptrend breached several previous support zones and fell pennies short of tagging December’s high at $0.248. As the expected profit-taking event took place, the bears left a subtle cue within the technicals that the initial stages of the rally were already over.
Algorand price currently auctions at $0.213. On January 18, the bears forged a daily candlestick close beneath an ascending trend channel. The trend and the 8-day exponential moving average were essential in catalyzing the 40% rally, providing support during every pullback in price.
Currently, the ALGO price is retesting the trend, a classical signal for bears to enter the market and use the breached barrier as resistance. If the market is taking a turn for the worst, then order blocks at $0.18 and $0.17 stand a fair chance of being retested. The bearish scenario allows up to a 20% decline from the current ALGO price.
ALGO/USDT 1-day chart
The bulls need to produce a candlestick close above the 8-day exponential moving average (EMA) at $0.228 to invalidate the bearish possibility. In doing so, the Algorand price could challenge December’s high at $0.248 as a first target of the unfolding continuation of the trend. ALGO would rise 15% if the bulls were to succeed.
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