Algorand price analysis: ALGO finds support at $1.350 but bulls remain dormant

Algorand price analysis

TL;DR Breakdown

  • Algorand price analysis suggests sideways movement across the short term
  • The closest support level lies at $1.350 and further below at $1.3090
  • ALGO faces resistance at the $1.3862 mark and further upwards at $1.400

The Algorand price analysis shows that after falling to the $1.350 mark the buyers were able to find a strong support level to stop the bearish activity. However, the bulls have been unable to initiate a rally as of now and so the price consolidates above the $1.350 mark.

The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies observe negative price movements. Major players include WAVES and EGLD recording a 9.93 and a 6.10 percent decline, respectively. 

Algorand price analysis: ALGO consolidates at $1.350

Algorand price analysis: ALGO finds support at $1.350 but bulls remain dormant 1
Technical indicators for ALGO/USDT by Tradingview

Across the technical indicators, the MACD is currently bearish as expressed in the red color of the histogram. However, the indicator shows low bearish momentum as the height of the histogram remains low at press time. Furthermore, the lighter shade of the indicator suggests a decreasing selling momentum across the short-term charts as ALGO continues its consolidation around the $1.350 mark. 

The EMAs are currently trading low as ALGO observes net bearish activity over the last few days as the price dropped from the $1.500 mark to the current $1.350 mark. At press time, both of the EMAs move along the x-axis suggesting low dominance towards either side of the market. Furthermore, the recent consolidation also adds to the low slope of the 12-EMA. 

The RSI is currently neutral but trades low showing slight bearish dominance over the price action. The indicator hovers at 40.57 index units moving horizontally at press time as either side of the market struggles for market dominance. However, the neutral position of the indicator shows that ALGO has room for significant movement in either direction before it would need a trend correction.

The Bollinger Bands are currently narrow and show further convergence as the price action makes a return towards the $1.400 mark. The consolidation around the $1.350 level shows a marked drop in price volatility across the short term. With speculation high in the markets, the Bollinger Bands suggest low movement in the next few days. Currently the bands’ lower limit provides support at $1.3090 while the mean line presents a resistance to the bulls at $1.3861

Technical analysis for ALGO/USDT

Overall, the 4-hour Algorand price analysis issues a bear signal with 14 of the 26 major technical indicators showing support to the bears. On the other hand, only two of the indicators support the bears suggesting that there is little to no buying activity occurring in the markets. Meanwhile, the remaining ten indicators sit on the fence and issue no signals at the time of writing.

The 24-hour Algorand price analysis accentuates this sentiment and shows 15 indicators in favor of further downwards movement against two suggesting an upwards price action across the mid-term charts. The analysis reaffirms the bearish dominance over ALGO. At the same time, nine indicators do not support either side of the market.

What to expect from the Algorand price analysis?

Algorand price analysis: ALGO finds support at $1.350 but bulls remain dormant 2
4-hour price chart by Tradingview

The Algorand price analysis shows that after making an attempt to climb up to the $1.500 mark, the bulls were rejected at the level and crashed to the $1.350 mark where they currently find support. While the support level enabled the buyers to stop the negative price movement, the bulls have been unable to initiate a counter-rally so the momentum remains low ant the price consolidates at the level.

Currently, traders should expect the Algorand price analysis to move sideways across the short-term as the buyers generate momentum to breakout. The closest resistance below the $1.40 mark can be expected to be crossed in the next few days initiating a rally towards the $1.500 mark. However, a downwards breakout may result in a drop to the $1.30 and further below to the $1.250 support level.

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Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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