- ALGO coin price broke down from the 50-day EMA support
- The ALGO/BTC pair trading at 0.00002868 BTC, with a loss of 3.83%,
- The ALGO coin 24-hours trading volume is $632.6 Million, indicating a 49.9% gain
As mentioned in my previous article on Algorand, the ALGO coin indicated a long opportunity with the breakout from the ascending triangle pattern in the 4-hour time frame chart. However, as feared, the intense selling pressure above the $2 mark trapped several crypto traders with the fakeout of the ascending triangle pattern.
Concerning the EMA’s, the ALGO coin still maintains its uptrend, as its price is trading above 100 and 200 EMA’s. However, the coin bears have captured the 50 EMA line, which earlier acted as excellent dynamic support.
The RSI value stands at 42, indicating a bearish sentiment regarding this coin. Moreover, the RSI line showed a significant drop in its value, indicating strong selling pressure.
ALGO Coin In The 4-hour Time Frame Chart
The fakeout from the ascending triangle pattern triggered this sudden fall in the ALGO/USD chart. The coin showed four consecutive red candles, which dropped its price back to the $1.72 support.
Furthermore, the crypto traders can expect a retest phase to the ascending trendline, which should validate if this downfall will continue or not. The coin price is currently trading at the $1.74 mark, with an intraday loss of 7.77%.
As per the traditional pivot levels, the nearest resistance for ALGO price is $2, followed by $2.28. As for the other side, the crypto traders can expect the nearest support at $1.72, followed by $1.53.
Conclusion: From the technical perspective, the overall trend for the ALGO coin is bullish. However, due to the absolute failure of the bullish pattern, the coin still has not escaped from the retracement phase, and the buyers will need more strength to continue this rally.
Support – $1.72
Resistance-$2