Algorand (ALGO) Sellers Return – Does This Signal Rally Is Coming to an End?

The Algorand (ALGO) price failed to break out from the $0.26 resistance area and could begin a short-term retracement. The Algorand price has fallen since reaching an all-time high of $2.99 in Nov. 2021. The decrease led to a minimum price of $0.16 in Dec. 2022. Measuring from the all-time high, this was a drop […]

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The Algorand (ALGO) price failed to break out from the $0.26 resistance area and could begin a short-term retracement.

The Algorand price has fallen since reaching an all-time high of $2.99 in Nov. 2021. The decrease led to a minimum price of $0.16 in Dec. 2022. Measuring from the all-time high, this was a drop of 94.68%. It seemingly caused a breakdown from the $0.18 horizontal support area, which had been in place since the bull run began in March 2020.

However, the breakdown was not legitimate (red circle) since the price reclaimed the $0.18 area shortly afterward. The area is now expected to provide support.

Currently, the ALGO coin price is attempting to break out from the $0.25 resistance area. Doing so could lead to an upward movement toward the next resistance at $0.43.

On the other hand, a rejection would likely lead to a re-test of the $0.18 level.

The weekly RSI is bullish since it has moved upward after generating bullish divergence (green line). As a result, a breakout above $0.18 is slightly more likely.

Algorand (ALGO) Long-Term
ALGO/USDT Weekly Chart. Source: TradingView

Algorand Short-Term Price Prediction: Retracement Before Rally

The technical analysis from the daily time frame gives a bearish Algorand short-term price prediction. It suggests that an initial retracement will occur before the upward movement continues.

There are two reasons for this: Firstly, the ALGO price was rejected by the short-term $0.26 resistance area (red icon). Secondly, the daily RSI generated bearish divergence.

As a result, a short-term decrease is expected. If one occurs, the closest support area would be at $0.21, created by the 0.5 Fib retracement support level and a horizontal support area. 

Conversely, a daily close above $0.26 would invalidate this bearish Algorand short-term price prediction. In this case, an upward movement toward $0.32 would be the most likely scenario.

Algorand (ALGO) Short-Term Price Prediction
ALGO/USDT Daily Chart. Source: TradingView

To conclude, the Algorand price forecast suggests that the future price will fall to $0.21 before resuming its upward movement. A daily close above $0.26 would invalidate this and possibly take the ALGO price to $0.32.

For BeInCrypto’s latest crypto market analysis, click here.

The post Algorand (ALGO) Sellers Return – Does This Signal Rally Is Coming to an End? appeared first on BeInCrypto.

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