- Algorand price analysis is bearish today.
- ALGO/USD set lower high at $1.90.
- The market continues to consolidate.
The price analysis for Algorand is bearish today, as we anticipate a subsequent higher low to be established later today. As a result, ALGO/USD will continue to move in a progressively tighter range over the following days. Given this, we anticipate a subsequent price rally to the downside towards $1.12 in the near term.
A higher high has not been set today at $1.90 for ALGO/USD, contradicting our previous analysis. As such, we must re-evaluate how likely it is that $2 can be established as support later in the day and into tomorrow for this to happen. The short-term trend remains bullish, and we maintain that this will continue over the following days until a lower high is eventually formed at some point during the next week.
Nevertheless, Algorand is setting up for a price decline towards $1.12 in the near term with strong support by way of an ascending triangle pattern. Over the past few days, we have witnessed lower highs and higher lows established – implying there is no ‘real’ price direction just yet. We anticipate that this pattern will break to the downside when it reaches its apex point at around $1.5 later on next week; however, this may only occur following confirmation of bullish momentum again.
ALGO/USD 4-hour chart: ALGO set to retrace?
On the 4-hour chart, we can see that bears have taken control, as the Algorand price action will look to establish yet another higher low to continue the consolidation.
ALGO/USD 4-hour chart. Source: TradingView
Algorand’s price has been highly volatile this week. On November 16, a solid lower low was established after a few-day decline from $2.30 to $1.55. From there, on November 18, a strong reversal occurred, rapidly breaching the prior high and spiking to $2.82.
However, as with all such swings, most of the profit was quickly reversed, and support was found at $1.75 on the same day. Since then, we’ve seen ALGO/USD make both lower highs and higher lows, suggesting that the range is becoming more narrow.
The Algorand price has been downtrend since breaking below the $1.50 resistance level on May 3. The price is presently testing the $1.75 mark, with a rally to $1.90 establishing another lower high. Since then, bearish momentum has slowly returned, likely leading to another retracement within the next 24 hours.
Algorand Price Analysis: Conclusion
The Algorand price analysis is bearish today, as we anticipate another decline to follow over the next 24 hours following a further decline high. As a result, ALGO/USD should move towards $1.75 support, where a higher low will be established to extend the consolidation.
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