- Algorand price lowered more than 3 percent on the day to sit just above $1.40 support floor
- Trading volume dipped 25 percent, indicating sell status in play at current trend
- Technical indicators also show that bearish run is set to continue
Algorand price analysis for the day shows price dropping lower towards the $1.40 support floor. Decreasing more than 3 percent on the day, price fell as low as $1.40 and fell below the crucial 50-day exponential moving average (EMA). Since the significant decline on December 4 where ALGO price fell down to $1.31, the token has been unable to consolidate momentum and has stagnated in the crypto market. Trading volume fell more than 25 percent, to signal the selling action in play at the current trend.
The larger cryptocurrency market dipped slightly after consecutive days of recovery, as Bitcoin dropped 2 percent to sit just above $48,000. Ethereum stayed above the $4,000 mark, with major Altcoins also declining. Polkadot dipped 3 percent to sit at $26.43, while Ripple and Litecoin dipped 2 percent each. Dogecoin made a significant 13 percent dip to take price down to $0.156, while LUNA upped 7 percent to sit at $67.71.
ALGO/USD 24-hour chart: Low market valuation in play as price stagnates
On the 24-hour chart for Algorand price analysis, price can be seen facing a stalemate in the market. The Relative Strength Index (RSI) value of 39.04 represents low market valuation, and the price movement over the past week justifies it. ALGO price is stuck within a narrow range between support and resistance, as bulls look to form an upturn. Price currently sits below the crucial EMAs, and within the lower two curves on the Bollinger Bands, highlighting the bearish outlook.
ALGO/USD 4-hour chart: Dip set to continue as price falls to $1.40 support
The short-term trade for the ALGO/USD trade pair suggests that the decline in price is set to continue as the token faces low market valuation and majority seller action in the current trend. Price is set to fall below the $1.40 support over the next trading session and a rally upward is expected from that point onwards. The 4-hour RSI shows a meagre value of 45.23, suggesting lowly market valuation, while the Moving Average Convergence Divergence (MACD) curve sits above the neutral zone, just below the 0.00 mark.
Algorand price analysis: Conclusion
Majority technical indicators suggest that ALGO is set to decline past the $1.40 support floor and only then can an upturn be initiated. Price over the past week has become stagnated and lost market interest, suggested by falling trading volume and lowly RSI values. The next challenge for the token would be to stay in close contact with the $1.40 mark and move up to $1.44 resistance.
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