Lorenzo Stroe
Independent Analyst
- Algorand price remains contained inside an ascending wedge pattern.
- ALGO got rejected from a key resistance level and could fall even lower.
- Algorand sellers target $0.8 as the next potential target.
Algorand has been trading inside an uptrend since February 23, trying to recover from a 55% correction. Unfortunately, it seems that bears have the upper hand in the short-term as ALGO got rejected from a critical resistance level.
Algorand price faces a potential sell-off down to $0.8
On the 4-hour chart, Algorand price remains bounded in an ascending wedge. ALGO got rejected from $1.18, which is the 50-SMA, and it's closely located to the upper trendline resistance level. This rejection can quickly push Algorand down to the lower boundary of the pattern at $1.05.
A breakdown below the key support level at $1.05 has the potential to drive ALGO down to $0.8, a 23% move calculated using the height of the pattern as a reference point.
To invalidate the bearish outlook, bulls must push Algorand price above the 50-SMA and the upper resistance trendline located at $1.20. A breakout above this point should swiftly drive Algorand price to a high of $1.5.
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