Algorand Price Forecast: ALGO reverses its 30% rally midway
- Algorand price confirmed a 30% breakout as the $1.18 level was breached.
- The supply barrier at $1.31 has rejected this upswing twice, resulting in a reversal midway.
- A bearish scenario might come into the picture if ALGO pierces the ascending triangle's hypotenuse at $1.12.
Algorand price shows the exhaustion of bulls as sellers pushed the price back to a crucial level.
Algorand price faces a stiff resistance barrier
Algorand price crashed nearly 45% between February 20 and 23, creating the first swing low. Since then, ALGO has repeatedly faced rejection around $1.18 forming higher lows.
An ascending triangle pattern forms by connecting the swing lows with the horizontal supply barrier. This setup predicts a 30% upswing if the breakout point at $1.18 is sliced. A decisive close above this level was seen on March 15, which led to a 15% upswing to $1.3.
Here, the sellers took control, pushing Algorand back to $1.18. The same events occurred the second time Algorand bulls tried to push the price higher.
Despite the pullbacks, ALGO is still bullish, as portrayed by the SuperTrend indicator. So long as this buy signal is valid, the Algorand price has a chance to surge 30%.
ALGO/USDT 4-hour chart
A sudden spike in selling pressure leading to re-entry into the ascending triangle pattern will put the upswing in jeopardy. However, if Algorand price slices through the triangle’s hypotenuse at $1.1, the bullish thesis will be invalidated.
In such a case, ALGO could slide 15% to a stable demand barrier at $1. If the bearish momentum persists, the $0.90 level might be tested as well.
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.
