Algorand price to rally 20% as ALGO approaches a crucial demand barrier
|- Algorand price has slithered lower and looks ready for a retest of the $1.59 to $1.69 support area.
- A bounce from this barrier is likely to propel ALGO by 20% to $2.08.
- A breakdown of the range low at $1.52 will invalidate the bullish thesis.
Algorand price has been on a downtrend for the past four days and has led to a crucial support level. A retest of this barrier could provide the bulls with a necessary oomph to kick-start an upswing.
Algorand price ready for a reversal
Algorand price has dropped 15% over the past four days and is currently hovering above the $1.59 to $1.69 demand zone. Interestingly, this zone is present just above the range low at $1.52. Therefore, investors can expect a trend reversal for the altcoin.
Moreover, a dip into the support area mentioned above will likely replenish the bullish momentum and trigger a potential upswing. After a 15% run-up from $1.69, ALGO will face hindrance around the $1.97 resistance barrier. Clearing this hurdle will push it toward the 50% retracement level at $2.08, constituting a 20% ascent.
While this is a short-term target, if the buying pressure persists, investors can expect Algorand price to retest $2.16, coinciding with the 61.8% Fibonacci retracement level.
ALGO/USDT 4-hour chart
While things are looking up for Algorand price, a breakdown of the $1.59 to $1.69 demand zone will create trouble for the bulls. If the selling pressure continues to build up, causing a 4-hour close below the range low at $1.52, it will invalidate the bullish thesis.
In this case, market participants can expect ALGO to crash 9% to retest the $1.37 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.