Jonathan Morgan
Independent Analyst
- Algorand price closed the week with the lowest weekly close in over a year.
- ALGO’s current downtrend has now existed for over 100 days.
- High probability of technical support near $0.71, but downside risks remain.
Algorand price action has shifted into an extreme low, bouncing off a key Fibonacci level but still uncomfortably close to the 2022 lows. However, ALGO’s weekly chart may point to a recovery occurring soon.
Algorand price positioned for a strong bounce to retest $1
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; a level ALGO breached two weeks ago to hit new 2022 lows.
Algorand has not only made new 2022 lows in the past few weeks, but last week’s close was the lowest since the week of January 29, 2021. However, some relief may be developing on the current weekly candlestick as buyers appear to support Algorand price near the 88.6% Fibonacci retracement at $0.74.
On the weekly Ichimoku chart, Algorand price is in a confirmed Ideal Bearish Ichimoku Breakout, a condition triggered on February 11, 2022, weekly candlestick. However, the weekly oscillators now point to a probable and imminent bullish reversal.
ALGO/USDT Weekly Ichimoku Kinko Hyo Chart
The weekly Composite Index is now at the second-lowest level in Algorand price action history. A result of this extreme low is hidden bullish divergence. The Composite Index has a lower low than the trough found in October 2020, but the corresponding price action shows higher lows. Additionally, given the massive gaps between the bodies of the weekly candlesticks and the Tenkan-Sen, a mean reversion to $1 is extremely likely.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.