- Algorand price has touched $0.67 for the fourth time in roughly a year on the 2-day chart.
- ALGO price is currently trading below last week's support at $0.70.
- The altcoin needs to consolidate above $0.77 to invalidate the bearish thesis.
Algorand (ALGO) price could see further downside action of up 20% as bears have managed to flip through last week's support zone.
Algorand price edges near the end as support may turn into resistance
Algorand price is trading below last week’s support zone with bears setting the stage this week. Now, bulls are holding on by a thin thread as they have managed to establish a Doji candle following the early Monday sell-off. ALGO price is currently trading at $0.70 and retesting the broken support zone.
Traders going long could potentially get trapped into buying a mixed signal on the ALGO price as there could be a morning star pattern printed on the end of the current 2-day candlestick. Despite a classic bullish pattern in the making, it is worth noting that the volume is still not showing a clear reversal signal. Furthermore, the low print yesterday is now the lowest low printed in February.
ALGO/USD 2-Day Chart
Bears will likely allow Algorand optimists to open positions and even push ALGO price an additional 5-7% higher before revealing their true power again. Safer traders should stay away or look to short the ALGO price at around $0.735 and $0.745, respectively. Bears are likely to be aiming for the 2021 lows around $0.60, 20% below current prices.
Despite the bearish indicators, bulls have an ace card to play which is that the ALGO price tested the $0.67 zone for the fourth time. ALGO extremists should consider the current market conditions as an all-or-nothing moment, as the fourth touch of any support or resistance is usually the catalyst.
Invalidation of the bearish thesis for Algorand price will occur if the bulls can produce enough buying power to send ALGO price up another 10% to consolidate above $0.77. Should this happen, investors should expect a spike towards $0.95 and potentially $1.00, a more than 50% relief rally above the current Algorand price.
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