Algorand price is in its final decline towards $0.36
- Algorand price is seeing an uptick in bearish momentum on the volume indicator.
- ALGO price appears to be coiling within an ending diagonal formation.
- Invalidation of the bearish scenario is a close above $0.45.
Algorand price signals “the end is near”
Algorand price is still declining since the steep decline into lows at $0.36 on May 12. The ALGO price action's time-consuming market behavior appears to form a C wave ending-diagonal pattern, which means the downtrend will soon end. However, the bulls should be careful not to buy Algorand price too early as the technicals indicate one more downswing could occur while maintaining the structure of the notorious reversal pattern.
Algorand price has shown a subtle ramping pattern on the volume profile, adding further bearish confluence. If the technicals are correct, a final capitulation low could occur to the $0.36 zone before the anticipated countertrend rally towards $0.56 begins. Traders should consider waiting on the sidelines for lower targets or jump in at the sight of a bullish breakout.
ALGO/USDT 3-Hour Chart
Still, having an invalidation level is essential for such a challenging market. Algorand price needs to breach and close above the $0.45 level to consider the completion of the ending diagonal pattern. If this bullish event happens, consider the downtrend scenario over A $0.57 ALGO price could be the next bullish target, resulting in a 35% increase from the current Algorand 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.
