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

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

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.