Jonathan Morgan
Independent Analyst
- Algorand price is now trading below where it was a year ago.
- Russia’s invasion of Ukraine has generated a flight of capital from risk-on markets.
- High probability of technical support near $0.71, but downside risks remain.
Algorand price action is facing the same pressure dominating the entire cryptocurrency market. The results of Russia’s invasion into Ukraine have confirmed what most analysts and pundits expected, but risk-on markets globally continue to feel the pinch – and ALGO is no exception.
Algorand price must hold $0.71, or it could collapse toward $0.56
Algorand price is currently trading at a level where there is little to no support with the Ichimoku Kinko Hyo system or at any other technical price level. The closest support zone is the 88.6% Fibonacci retracement at $0.74, but ALGO is currently trading below that level.
Algorand had made new 2022 lows and is now trading where it was on February 4, 2021. The extended 2021 Volume Profile shows that the next high volume node, and final support zone for ALGO, is at $0.56. If the $0.71 price level fails to hold as support, a return to $0.56 is almost a certainty.
On the weekly Ichimoku chart, Algorand price is in a confirmed Ideal Bearish Ichimoku Breakout, a condition triggered on the previous weekly candlestick close. Any bullish relief may remain elusive. The Relative Strength Index remains in bear market conditions but is not yet oversold. However, the Composite Index is close to hitting new all-time lows, and Optex Bands oscillator is trading at all-time lows.
ALGO/USDT Weekly Ichimoku Kinko Hyo Chart
If bulls wish to invalidate the current and future bearish outlook, they will need to pour into Algorand price and rally it above the weekly open – but that is becoming an increasingly unlikely proposition.
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