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.
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.
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.
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Source : Algorand (ALGO) Sellers Return – Does This Signal Rally Is Coming to an End?
