Algorand (ALGO) The price seems to be close to seeing an additional 20% downside move as the bears managed to break past last week’s support zone. Algorand price is nearing the end as support may turn into resistance.
Algorand price is trading below last week’s support zone with bears to set the chart this week. The bulls, who managed to form a Doji candle after early selling on Monday, now seem to have lost a lot of strength. ALGO price is currently trading at $0.70 and it is retesting the broken support zone.
Long-term investors, as a morning star pattern may have been printed at the end of the current 2-day candlestick ALGO priceA mixed signal may fall into the buying trap. You should keep in mind that despite the classic bullish pattern that continues to form, the volume is still not signaling a clear reversal. Also, yesterday’s low represents the lowest reached in February.
The bears could possibly allow a 5-7% rise in the Algorand price to allow optimistic traders willing to open a position to trade or even create a more optimistic image. Traders who want to make a safer profit should stay away from this situation or keep the ALGO price around $0.735 and $0.745, respectively. The bears are likely to target 2021 lows around $0.60, 20% below current prices.
Despite the bearish indicators, the bulls have an ace card to play, which means ALGO price has tested the $0.67 region for the fourth time. Since the fourth touch of any support or resistance is often the catalyst, ALGO extremists should consider current market conditions as an all-or-nothing moment.
If the bulls can generate enough purchasing power to send ALGO price 10% higher to consolidate above $0.77, algorand price for the fall thesis will be invalid. In such a scenario, traders can expect a relief rally more than 50% above the current Algorand price to $0.95 and potentially to $1.00.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.