Algorand price preps for a decline back to $0.43
- ALGO price appears to be coiling within a triangle formation .
- Algorand price bullish momentum is declining.
- Invalidation of the bearish scenario is a close above $0.52.
Algorand price looks constrained
Algorand price is failing to establish bullish momentum following the severe decline and capitulation event into the lows at $0.36. The ALGO price could begin heading to complete a b wave triangle before further uptrend occurs. Analyzing the current ALGO price action, the bears seem to have re-conquered control as the Algorand price is climbing in a choppy upwards manner. This could be early evidence of bullish exhaustion.
Algorand price is also declining on the volume profile which adds further bearish confluence. If the technicals are correct, a C wave could be produced into the $0.43 zone in the coming days. Traders should consider waiting for the triangle’s structure to finalize before jumping in.
ALGO/USDT 4-Hour Chart
Still, having an invalidation level is vital for traders. Algorand price should not breach the $0.52 level. If this bullish event happens, consider the downtrend scenario void. A $0.57 ALGO price could be the next bullish target resulting in a 15% increase from the current ALGO price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
