Algorand price analysis shows that the cryptocurrency has continued to move in a downward trend after breaking the $0.70 barrier yesterday. The immediate support at $0.6469 did not hold, and the prices have retested this area today but with no significant bullish pressure to take prices up. At press time, ALGO was changing hands at around $0.67, a 6.74 percent drop from yesterday’s high of $0.72.
Therefore, from the technical analysis, it seems that the bearish trend is likely to continue in the near future as the market momentum fades.
Yesterday’s trading session closed with ALGO prices trading around $0.6469 after a bearish day of trading in which prices fell by 6.74 percent. The cryptocurrency had started the day off trading around the daily high of $0.7127 before bears stepped into the market to push prices lower throughout the day of trading. The bearish pressure was so intense that ALGO prices dropped beneath a descending trend line that has been active since early April. The cryptocurrency appears to have found major support at the $0.6469 level, as it has managed to bounce off of this level several times over the last week.
Algorand price action on a 1-day price chart: Selling pressure increases as Algo prices drop to lows of $0.6469
Algorand price analysis shows the cryptocurrency has been trading around the $0.6469 level over the last few days of trading, but it remains to be seen if this support level will hold. The cryptocurrency has been caught in a bearish trend since early April and it may continue lower throughout today’s trading session if prices fail to rebound off of current levels. The trading volume for ALGO prices has been on the decline over the last 24 hours as it now sits at $216,191,112.56 while the market capitalization for the cryptocurrency sits at $1,017,497,994.42.ALGO is currently ranking at position 31 as it dominates 0.25 percent of the entire cryptocurrency market.
ALGO/USD 1-day price chart, source: TradingView
The technical indicators on the 1-day timeframe Algorand price analysis chart show that the RSI has moved into oversold territory as it now sits at 37.07. This indicates that the selling pressure for ALGO prices is increasing and we could see a potential increase in bearish momentum if sellers manage to push prices further lower throughout today’s trading session. If this occurs, we may see Algorand price analysis dip beneath its major support level at $0.6469.
The MACD had also crossed into bullish territory earlier this morning, but it is starting to move lower as the bearish momentum in the market starts to pick up steam. The Bollinger bands are contracting inwards as prices continue to fluctuate around the $0.6469 level indicating the market volatility is decreasing.
Algorand price analysis 4-hour price chart: Bearish momentum increases as ALGO prices move closer to major support
Algorand price analysis over the 4-hour timeframe shows that prices have been trending lower since reaching highs of $0.7127 on March 5th. Since then, we have seen a consistent bearish trend in play as prices have dropped by 6.74 percent to the current level of $0.6469. The Relative Strength Index is showing a bearish crossover as prices test the major support at $0.6469 and it appears to be indicating that selling pressure will only increase until we see a bullish trend develop again in the near future.
ALGO/USD 4-hour price chart, source: TradingView
The Bollinger bands are contracting as prices fluctuate around the $0.6469 level and this is an indication that market volatility is currently low. However, we could see a sudden increase in market volatility if prices were to break below this major support level as bears would then target the next level of support at $0.6361. On the other hand, if prices were to break above the upper trend line of a descending to rebound off of current levels, we could see a potential increase in bullish momentum, and ALGO prices rebound back towards the $0.7127 level.
The MACD line is currently moving below the signal line indicating that bearish momentum is in play at the moment. However, the MACD histogram is currently printing near the zero line which indicates that the selling pressure may be starting to subside.
Algorand price analysis conclusion
Algorand price analysis indicates that a bearish trend is still in play as prices have dipped 6.74 percent over the course of yesterday’s trading session. Prices had found some support at around $0.6469 but it remains to be seen if this will hold as the bearish momentum in the market appears to be picking up steam. The technical indicators on both the 1-day and 4-hour timeframe charts show that selling pressure is currently increasing which could lead to prices breaking below major support levels.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.