fxs_header_sponsor_anchor

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.

This video details how Bitcoin price moves could affect Algorand price





 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.