• 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

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?  

More Litecoin News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.

More Bitcoin News
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

More Cryptocurrencies News
Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.

More Bitcoin News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

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