Algorand price remains on track to retest $1.20 amid impending bear cross
|- Algorand price looks to retest 200-DMA support despite the rebound.
- Looming bear cross and negative RSI keep ALGO sellers hopeful.
- Acceptance above $1.82 is critical to reverse the downtrend in the near term.
Algorand price rebounds from weekly lows of $1.42 this Saturday, although lacks the upside follow-through, tracking the price action seen in the flagship cryptocurrency, Bitcoin.
ALGO price has been on a downtrend so far this week, having peaked just under the $2.00 mark on Monday. Since then, the altcoin has lost roughly 15%.
Buyers are now looking to find their feet, as the ALGO price jumps 2.64% on the day, currently trading at $1.50.
The downside remains more compelling for Algorand price so long as it holds below the $2.00 barrier.
Algorand price to resume downtrend amid bearish technicals
Algorand sellers have taken a breather this Saturday, allowing some time before they resume the bearish momentum.
In the meantime, ALGO bulls are coming up for their last dance. Although with the 14-day Relative Strength Index (RSI) still lurking below the central line, the bounce could likely remain short-lived.
Adding credence to a potential move lower, the 50-Daily Moving Average (DMA) is on the verge of piercing the 100-DMA from above.
If the bearish crossover occurs then it would flash a negative signal for ALGO traders, prompting a fresh decline towards the all-important 200-DMA at $1.36.
On a firm break below the latter, ALGO bears will look to take out the December 4 lows of $1.21.
Further south, the $1.00 psychological level will come into the picture.
ALGO/USD Daily chart
Alternatively, the road to recovery could face an immediate hurdle at Friday’s high of $1.63, above which the downward-pointing 21-DMA at $1.73 could probe the bearish commitments.
Additional recovery gains could be seen only on acceptance above the $1.82 supply zone, where the 50 and 100-DMAs converge.
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