Algorand price to rally 20% as ALGO approaches a crucial demand barrier
- Algorand price has slithered lower and looks ready for a retest of the $1.59 to $1.69 support area.
- A bounce from this barrier is likely to propel ALGO by 20% to $2.08.
- A breakdown of the range low at $1.52 will invalidate the bullish thesis.
Algorand price has been on a downtrend for the past four days and has led to a crucial support level. A retest of this barrier could provide the bulls with a necessary oomph to kick-start an upswing.
Algorand price ready for a reversal
Algorand price has dropped 15% over the past four days and is currently hovering above the $1.59 to $1.69 demand zone. Interestingly, this zone is present just above the range low at $1.52. Therefore, investors can expect a trend reversal for the altcoin.
Moreover, a dip into the support area mentioned above will likely replenish the bullish momentum and trigger a potential upswing. After a 15% run-up from $1.69, ALGO will face hindrance around the $1.97 resistance barrier. Clearing this hurdle will push it toward the 50% retracement level at $2.08, constituting a 20% ascent.
While this is a short-term target, if the buying pressure persists, investors can expect Algorand price to retest $2.16, coinciding with the 61.8% Fibonacci retracement level.
ALGO/USDT 4-hour chart
While things are looking up for Algorand price, a breakdown of the $1.59 to $1.69 demand zone will create trouble for the bulls. If the selling pressure continues to build up, causing a 4-hour close below the range low at $1.52, it will invalidate the bullish thesis.
In this case, market participants can expect ALGO to crash 9% to retest the $1.37 support level.
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.
