• Algorand price faell below the 50-day simple moving average (SMA) for the first time since December 23, 2020. 
  • The Relative Strength Index (RSI) shows a balance between buyers and sellers.
  • Investors must watch for support around the psychological level of $1.00.

Algorand price defined an ascending channel for 25 days, just above the 50-day SMA. On Monday, ALGO closed decisively below the lower trendline and the medium-term moving average. It could be a sign of impatience among traders or an alert that a deeper correction is about to unfold.

Algorand price breakdown could be short-lived

A spike in selling did not drive the ALGO decline below the ascending channel and the 50-day SMA. In fact, volume on Monday was 50% below the daily average of 60.88M.

A continuation of the ALGO breakdown will find immediate and substantive support at the convergence of  $1.00 with the 0.50 retracement level at $0.98, representing a loss of 14% from the current price level.

Another significant Algorand price level comes in at the August 2019 high and the February 23 low at $0.85. A final but equally important support is at the confluence of the August 2020 high with the 0.618 Fibonacci retracement level at $0.77.

Each of the levels mentioned above present good risk levels for nimble traders, but beware that a price vacuum exists below $0.77.

ALGO/USD daily chart

ALGO/USD daily chart

A daily close inside the channel will be the first signal that this week’s weakness is just a shake-out of impatient traders. The channel’s mid-line at $1.38 is a critical resistance going back to March 5, followed by the channel’s upper trendline at $1.54.

In either direction, the ALGO chart has marked support and resistance levels that should keep sharp moves contained in the short-term.


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP