How Algorand price could be axed in half

Algorand price sees its price action fall back to $0.43.
ALGO price gets support from a historic pivotal level and the monthly S1 for now.
In case bears make a breakthrough to the downside, expect to see a 50% drop towards $0.23.

Algorand (ALGO) price is set to drop below $0.43 support and the monthly S1 pivot level. The recent turmoil in the stock market is seeing investors pull out their money and go into cash and bonds. The down move is being contained for now, as the dollar trades sideways, but once it strengthens, expect to see an exponential move to the downside for ALGO price towards $0.23.

ALGO price set to drop from $0.45 to $0.23

Algorand price was set to rally back to $0.60 but got cut short in its tracks overnight during the US trading session as a firesale occurred in stock markets. With the Dow Jones dropping back to the low levels from 2020, investors are mulling over where to put their money to work as cryptocurrencies are falling out of grace. On the back of that, expect to see more outflows with Algorand bleeding and devaluing back to its lowest level of 2021.

ALGO price sees bearish pressure mounting on $0.43, a historic pivotal level, and the monthly S1 support line. If bears can squeeze bulls out of that region, a new area of almost 48% could open up for another decline. Expect to see a nosedive move in another round of investor pullbacks and $0.23 to provide support followed by the monthly S2.

ALGO/USD daily chart

On the other hand, a significant catalyst could kick off a turnaround in global sentiment, in a situation where, for example, inflation got tamed across the globe. If that happens, central banks would need to be less hawkish and have less tighter monetary conditions, opening up more room for spending and supporting the economy, as well as global markets. That would see an inflow back into cryptocurrencies with a quick run up towards $0.69, hitting a quadruple top with the 55-day Simple Moving Average (SMA), the red descending trend line and a historic pivotal level coinciding with the current monthly pivot.

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