- Algorand Price fell 20% in the current week and is approaching multi year low.
- ALGO Price is in strong downtrend and trading below both the EMA.
- The ALGO crypto price continues to decline and is hitting yearly lows.
Algorand Price fell 20% in the current week and is approaching the multi-year low. The price is continuously declining by forming lower low swings and has broken down the $0.1500 support.
ALGO price is trading below the downward sloping 200 and 50 day EMA shows strong downtrend. However, the EMA has gone far away from the current price. So, prices might show short term pull to test the EMAs.
Algorand Price showed a decent recovery in the beginning of 2023 and hit a swing high at $0.2993. Later, the prices witnessed minor profit booking and reverted in the downward direction.
The previous rally was not long lasting and buyers failed to hold the higher levels. From mid of March to mid of April, ALGO price consolidated in a narrow range between $0.2000 and $0.2500.
It showed signs of base formation and investors expecting a range expansion. Sadly, the Algorand price took the opposite direction and broke down the lower range. It triggered the negative sentiment and prices began the next phase of downfall.
Algorand Price is currently trading at $.1214 with an intraday decline of -2.80%. The 24 hour volume to market cap ratio is 0.072. The ALGO/BTC pair is trading at 0.00000461 with an intraday decline of -2.95%.
Algorand price entered into oversold territory
Algorand Price corrected 59% approx from the recent swing high and eroded the complete gains generated in 2023. The price hitting the multi year low indicates the strength and dominance of sellers.
The buyers are hesitating to create fresh long positions and losing the confidence in Algo.
The Algorand crypto price entered into the oversold territory and short term bounce is possible. However, the up-move will be considered as temporary till prices reach $0.2500 level.
To regain the confidence and to reverse the trend the buyers have to break the $0.2500 hurdle. Else, the reliability of any short term pull back will remain doubtful. The technical analysis, ALGO price is in bear grip and more downside is possible.
ALGO Price fell for 8 consecutive weeks
ALGO Price fell for 8 straight weeks visible on a weekly chart. Downfall is still continuing and no signs of recovery. The overall market sentiment is also turning bearish which is fuelling the downside momentum in ALGO.
The price is near the multi- year low and falling in a steep way. So, The probability of consolidation near to the lows is also high.
The MACD curve is also declining indicates bearish momentum may continue for a few more weeks. The RSI at 18 denotes highly overbought territory. So, Anytime a relief rally may trigger to clear the previous shorts.
Conclusion
Algorand Price fell 20% in the current week and formed a highly bearish pattern. However, the ALGO price is near the multi-year low which may act as a support and prices might consolidate for some time.
Technical analysis says, ALGO Price is in downtrend and no signs of reversal is visible.
Technical levels
Resistance levels: $0.1588 and $0.2400
Support levels: $0.0976 and $0.0500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.