Algorand price weakens and could crash to $0.60

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.

Algorand Price Chart

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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.