Algorand price at inflection point, ALGO ready for 60% rally
- Algorand price is trading above the $0.675 support level and eyeing liquidity collected below it.
- A sweep of $0.675 will likely result in a 60% exponential move to $1.103.
- A daily candlestick close below $0.6185 will create a lower low and invalidate the bullish thesis for ALGO.
Algorand (ALGO) price has arrived at an inflection point that consists of a confluence between a support level and a liquidity pool.
Algorand price at make-or-break point
Algorand price has crashed roughly 76% since its spike on November 18. This massive downswing has shattered every support level on its way and flipped them into resistance barriers.
Currently, ALGO is hovering above the daily support level at $0.675, below which rests the sell-stop liquidity formed after the triple bottom in mid-2021. Therefore, investors can expect market makers to push Algorand price to sweep below $0.675 to collect that liquidity.
This move below the said support level will be a key development that signals the start of an uptrend. From there, investors can expect Algorand price to rally 20% and retest the immediate hurdle at $0.818.
Market participants that entered a long position at $0.675 can book profits at $0.818, assuming a conservative outlook. Under certain circumstances, ALGO could flip the $0.818 hurdle into a support level, which will open the path for the bulls to propel Algorand price by 35%, bringing the total gain to 60%.
ALGO/USDT 1-day chart
While things are looking up for Algorand price due to the support level and liquidity pool confluence, a daily candlestick close below $0.6185 will create a lower low. This move will skew the odds in the bears’ favor and invalidate the bullish thesis for Algorand price.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
