- Algorand price analysis is bullish today.
- ALGO/USD moved lower again overnight.
- ALGO/USD is currently trading at $1.73.
The price of Algorand is currently bullish, with a potential for a lower high to be formed above $1.72 in the next hours. As a result, ALGO/USD will rise again as bulls attempt to recoup some of the damage they’ve suffered over the past week.
With the daily Stochastic RSI crossing over, prices will likely fall back to $1.50, where support is found at the 200-day exponential moving average (EMA). There’s a chance that bulls will stumble as they approach this level, so it would be best to wait for a bullish reversal pattern before making any significant purchases.
The 200-day EMA is a lagging indicator, so it doesn’t react to price action immediately. This means that whenever the EMA crosses over, it’s still possible for prices to continue moving in the same direction for a while, which is why it would be best to wait before starting any new positions.
With the short-term Stochastic RSI recently crossing upwards while printing above 80, ALGO/USD will still trend higher towards $2.00 if the momentum continues to build underneath this indicator. It’s also worth noting that when you combine these two indicators, they form what’s known as the CCI, which has been proven to be quite reliable in terms of generating future signals.
ALGO/USD 4-hour chart: moving to retest the previous low
On the 4-hour chart, we can see selling pressure returning overnight, which is likely to result in a retest of the previous low at $1.55.
Since then, the Algorand price has seen significant selling. After a wild ride to $2.30 and a downward slide over the next several hours, a new high was established at $2.35 on November 12th.
The price fell to around $2.50, but the market was sluggish to react and offered little support after dropping below the $3 mark. After that, a strong rejection for more gains was observed, resulting in a significant drop below the $3 level. On subsequent days, bearish pressure began to dissipate gradually until it culminated in a rally.
On Monday, the $1.90 barrier was broken early in the morning, triggering a major sell-off that continued yesterday. Support at $1.55 has helped to keep the Algorand price down since then. The price of ALGO/USD has subsequently dropped below $1.75 before depreciating once again overnight. As a result, we anticipate the ALGO/USD to continue to decrease later today as it makes another attempt at breaking the $1.50 low.
On the 4-hour chart, a bullish trendline with a support level of $1.55 has been drawn to help determine future market movements. The formation is broken down into three sections: the consolidation, the upward trend and pullback, and finally, a second sharp rally that is being witnessed now.
Algorand Price Analysis: Conclusion
The Algorand price analysis is bearish today, as we anticipate a further drop later today. We expect that ALGO/USD will retest the previous low of $1.72, with continued depreciation a high possibility.
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