• Algorand price could be forming an inverse head and shoulders.
  • AGLO price is retesting a strong Fibonacci level.
  • Invalidation for the bullish thesis is a break below $0.67.

Algorand price could surprise the bears aiming for the March lows. Traders should keep their eyes on Algorand for a potential continuation of the uptrend.

Algorand price could retrace back to the $0.90 zone

Algorand price is currently trading at $0.79. Last week's bullish thesis gave a $1.06 target for the ALGO price with an invalidation at $0.7610. The bears have not yet invalidated the thesis but are coming in close with traders positioned to leave the market if the breach occurs. The ALGO price chart pattern displays some evidence of a short-term bottom around the current price point.

Algorand price is retesting the breached 61.8% retracement level and could be forming a classic inverse head and shoulders at this level. The ALGO price would need to retrace into the $0.93 level to complete the classic reversal pattern. Subsequently, there are several 2-day order blocks in the $0.90 zone, commonly referred to as "smart money magnets'' amongst professional traders.

ALGO 4/6/22

ALGO/USD 2-Day Chart

Algorand price current trade setup gives a 1-1 risk to reward ratio. The ALGO price should under no circumstances breach the head of the inverse head and shoulders at $0.67.

If the bears manage to breach $0.67, the entire uptrend for Algorand price would be void. Traders should expect more downside with ALGO price landing in the $0.60 and $0.55 price levels, up to a 35% dip from the current Algorand price.

 


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