Algorand price erratic behavior signals an important ingredient for investors
- ALGO price is making lower swing lows and lower swing highs progressively.
- ALGO price is producing choppy price action.
- Invalidation of the bearish idea is a breach of $0.85.
Algorand price is producing choppy back and forth action likely to form an ending diagonal pattern. Traders could expect very tricky price movements to persist unless $0.85 is broken.
Algorand price is a tricky chart to forecast
Algorand price has validated last week’s thesis as the bears managed to push the price into the first target at $0.65. Because the first target has been breached, a short-term countertrend is possible but unlikely to exceed $0.85. Currently, the Algo price has a considerable volume increase towards the target zone. This could be smart money’s involvement in taking profit while enticing traders to open long positions.
ALGO/USDT 6-Hour Chart
Algorand price shows oversold signals on the Relative Strength Index, which gives further confluence for the recent uptick in price. ALGO price has liquidity to grab as high as 15% into $0.81, but it is probably best not to swing for those targets because of the price action and newly printed lows for April.
A breach into $0.85 will completely invalidate the bearish downtrend. If a breach at $0.85 occurs, a pullback will eventually happen. If the setup presents itself, the Algorand price could re-route towards $1.00, resulting in a 35% increase from the current price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
