|

Algorand price at risk of 9% downturn with quadruple witching underway

  • A single trend line supports Algorand price action.
  • ALGO price looks set to break down 9% towards the low of 2022 at $0.6707.
  • Expect to see bears eke out a loss by the US closing bell as tail risks become headwinds.

Algorand (ALGO) price action is at the cusp of going into the weekend booking a loss  as price is at risk of falling, anda short-term trendline is the only handle providing support. As price action refrains from making new highs, pressure is mounting from bears against the trend line, and as headwinds emerge yet again, a break could see a nosedive move into the late US session, as investors try to erase any risk going into the weekend. A return to the low of 2022 near $0.6707 is possible, which would mean a 9% projected loss.

Algorand price action sees bears trying to rip down a technical wall

Algorand price action is seeing a reverse in tone and sentiment as a solid technical pattern gets distorted. For three consecutive days, Algorand price action bounced off a supportive trend line and, in the process, made a new intraday high each time. Today that pattern is broken with a lower high and bearish pressure mounting.

ALGO price action is under siege since overnight headlines changed the background in which price action is moving. Several tail risks are suddenly set on the forefront with a considerable systemic risk this evening from the Biden-Xi meeting. This is set to happen after the close of the European session  during the US session, which will be undergoing a quadruple witching, further weighing on the overall price action in global markets. Expect a clear break and quick nosedive, with a drop towards the monthly S1 at $0.6707 and possible minor overshoot printing new lows for the year.

ALGO/USD daily chart

ALGO/USD daily chart

Bulls are in desperate need of some positive headlines, that could still come in if a sudden peace deal is brokered or the outcome of the Biden-Xi meeting proves to be positive. That could see a pop in price action towards $0.80, eking out an 8% gain before heading into the weekend. In tandem with the stock markets, a close above would help set the tone next week, targeting $0.8679 that is currently coinciding with the 55-day Simple Moving Average as the next price target.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Sberbank issues Russia's first corporate loan backed by Bitcoin

Russia's largest bank Sberbank launched the country's first Bitcoin-backed corporate loan to miner Intelion Data. The pilot deal uses cryptocurrency as collateral through Sberbank's proprietary Rutoken custody solution.

Bitcoin recovers to $87,000 as retail optimism offsets steady ETF outflows

Bitcoin (BTC) trades above $88,000 at press time on Tuesday, following a rejection at $90,000 the previous day. Institutional support remains mixed amid steady outflow from US spot BTC Exchange Traded Funds (ETFs) and Strategy Inc.’s acquisition of 1,229 BTC last week.

Traders split over whether lighter’s LIT clears $3 billion FDV after launch

Lighter’s LIT token has not yet begun open trading, but the market has already drawn a sharp line around its valuation after Tuesday's airdrop.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.