Algorand price setting up to sweep the lows as bears aim for $0.56
- ALGO price has printed strong sell signals.
- Algorand price fell short of clearing the bearish invalidation level at $0.7504.
- Invalidation remains the same at $0.7504.
Algorand price could disappoint traders as the digital asset is setting up for a sweep the lows event.
Algorand price will decline further
Algorand price surprised the crypto community as the price soared 31% last weekend. Since the rally, the Algo price has been experiencing strong sell-offs, which should not be taken lightly.ALGO price has a bearish invalidation point at $0.7504, which was missed by the bulls despite the powerful weekend rally. Thus the overall trend is still bearish and could likely fall further if market conditions persist.
The bullish failure to breach the invalidation level could indicate smart money involvement. Market makers may have triggered many buy orders during the rally and could be using the newfound liquidity to push prices a lot lower. The first target for the bears will be the lows at $0.56. However, looking at the slope of the current decline, a drop in ALGO price to $0.48 would be unsurprising.
ALGO/USDT 2-Day Chart
Invalidation of the bearish model remains the same at $0.7504. The downtrend will be ruled as a corrective structure if the bulls can breach this level. The bulls could then reconquer the trend and send the ALGO price back to $1, resulting in a 50% increase from the current ALGO 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.
