- The ALGO price trend is a rounding bottom pattern, indicating bullish failure to sustain a reversal rally.
- ALGO price shows a very volatile phase around the 50D EMA.
- A bullish breakdown of the rounding bottom could push the price down towards the 200D EMA.
The bullish trend in ALGO price failed to break through the indirect resistance of $0.24, resulting in a sharp reversal. Algorand is falling below the psychological $0.20 level, showing a downward high that threatens to form a bullish pattern.
Algorand, which has fallen 21% in two weeks, is facing intense selling pressure and warning of a larger correction. Moreover, the market slowdown following the recent Bitcoin crash warns of a similar bearish trend.
Therefore, the short-term view on Algorand turns bearish and runs counter to the long-term bullish view of the ALGO price prediction.
Source- TradingView
With the rapid increase in trading volume, the ALGO price trend is facing significantly increased selling pressure after failing to break above $0.24. Starting at the $0.24 point, the downtrend leads to a sharp decline and Algorand loses important ground at $0.20.
Moreover, the dominant sellers have broken the dynamic support of the 50D EMA, signaling an intense selloff with high momentum. The huge candles around the 50D EMA reflect the ongoing brawl at a critical level.
Moreover, buyers are trying to maintain round bottom patterns to give the overhead neckline a try again. ALGO price is currently trading at $0.1860, down 0.32% intraday, following a 7.85% drop last night.
Last night’s bearish engulfing candle completed the evening star pattern, but lack of decisive resistance limited its reliability.
Technical indicators:
RSI: The daily RSI line is showing a sharp decline, crossing from the overbought area to below the midline, which reflects the ongoing oversold trend. Therefore, the momentum indicator shows a strong bearish movement.
Will ALGO price recover to $0.20?
Despite strong bullish sentiment last week, altcoins are under stress as markets slow down. As the downtrend overtakes, the chances of a reversal are minimal. However, the ALGO price chart shows a strong pattern, so buyers may be able to resolve tensions with a short sideways move.
In this case, buyers could counterattack and regain trend control above $0.20 and challenge the $0.24 neckline. Conversely, if the 200D EMA falls, the reversal opportunity is nullified.