- ALGO price has been stuck been consolidating above $1.89 since September 09.
- Algorand may make a big move to the downside as the price volatility decreases.
- The measured target of the descending triangle suggests thar ALGO may make a 25% decline to $1.50.
ALGO trades at $2.00 with a neutral bias, indicating indecision. The ALGO price volatility has been decreasing which has seen the asset get stick in indecision with no clear indication where the price is likely to go. However, a significantly bearish technical pattern shows that the Algorand could be headed for 25% downswing. But Algorand price could find substantial support downwards should the bullish outlook play out.
ALGO Price Could Plunge To $1.50
ALGO price has spelt out a descending triangle pattern on the four-hour chart. Algorand has been recording lower highs with relatively equal lows indicating that the sellers are slowly overpowering the buyers. The recent horizontal price action points to decreasing price volatility hinting that the indecision is nearing an end. This is validated by the narrowing of the Bollinger Bands (BB). Note that as the Bollinger Bands squeeze towards each other, a break out in either direction may happen in the near term.
The horizontal movement of the Moving Average Convergence Divergence (MACD) indicator close to the neutral line and the Position of the Relative Strength Index (RSI) indicator at 46.01 add credence to ALGO’s market indecision.
- Are you new to crypto trading? This guide on best cryptocurrency to buy may be of great help.
The measured target of the descending triangle is either a 25% drop to $1.50 or a 25% climb to $2.50.
ALGO/USD Four-Hour Chart
Should ALGO price slide the below the immediate resistance provided by the horizontal trendline of the descending triangle at $1.89, the odds of Algorand moving downwards to hit the 28% downswing to $1.50 will be increased.
However, before the ALGO/USD price reaches this target it might pause at several support bases.
The first line of defence is provided by the 100 period Simple Moving Averages (SMA) at $1.72. The second and the third support lines are at $1.66 and $1.58 support zones respectively.
- Follow this link if you want to know more about other coins on our next cryptocurrencies to explode this year.
This bearish narrative is accentuated by the position of the MACD indicator below the zero line in the negative zone. Moreover, the movement of the MACD line (blue) below the signal line (orange) shows that Algorand’s market momentum has turned bearish.
Looking Over The Fence
On the flipside, should the ALGO price break above the resistance provided by the descending trendline, it could climb 28% to $2.50. To achieve this, Algorand has to overcome the $2.10 resistance poised by the 50 period SMA.
Further resistance areas may emerge around the $2.25 major resistance where ALGO met Significant resistance in the past. A further rise below this level could see ALGO meet the $2.30 and the $2.40 resistance levels.
Looking to buy or trade Algorand now? Invest at eToro!
Capital at risk