Algorand price at risk as momentum shifts back in favor of the bears

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  • Algorand price remains contained inside an ascending wedge pattern.
  • ALGO got rejected from a key resistance level and could fall even lower.
  • Algorand sellers target $0.8 as the next potential target.

Algorand has been trading inside an uptrend since February 23, trying to recover from a 55% correction. Unfortunately, it seems that bears have the upper hand in the short-term as ALGO got rejected from a critical resistance level.

Algorand price faces a potential sell-off down to $0.8

On the 4-hour chart, Algorand price remains bounded in an ascending wedge. ALGO got rejected from $1.18, which is the 50-SMA, and it’s closely located to the upper trendline resistance level. This rejection can quickly push Algorand down to the lower boundary of the pattern at $1.05.

Click here to ALGO/USD 4-hour chart on TradingView

A breakdown below the key support level at $1.05 has the potential to drive ALGO down to $0.8, a 23% move calculated using the height of the pattern as a reference point. 

Click here to ALGO/USD 4-hour chart on TradingView

To invalidate the bearish outlook, bulls must push Algorand price above the 50-SMA and the upper resistance trendline located at $1.20. A breakout above this point should swiftly drive Algorand price to a high of $1.5.

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