- Algorand price approaches the key 50% retracement level at $0.639.
- A bounce off this barrier could trigger a 25% upswing to $0.742.
- If ALGO breaks below the $0.537 support level, it will invalidate the bullish thesis.
Algorand price is at a significant point in its recovery after the recent downswing, and it could be preparing for a new leg-up. A bounce off the midpoint of the decline will be key and decide the directional bias for ALGO.
Algorand price readies for a new leg-up
Algorand price crashed 25% between April 28 and April 30 and set a range low at $0.537. This move was followed by a 38% ascent that set the range high at $0.742. As ALGO kick-starts its pullback, there is a good chance for ALGO to retest the 50% retracement level at $0.639.
This level is key support for Algorand price and needs to hold for an upswing to emerge. Considering the bullish outlook seen in the Bitcoin price, which tends to influence the whole crypto market, there is a high probability that this move will occur soon.
A bounce of the 50% barrier will likely propel Algorand price to the range high of $0.742. However, there is a good chance that the run-up will extend to the 27% retracement level at $0.797, to collect the liquidity resting above the highs.
This level is likely where the upside is capped for ALGO and would be a good place for investors to step back and reevaluate.
ALGO/USDT 1-day chart
On the other hand, there is a good chance Algorand price could breach the $0.639 barrier and drop lower to sweep the range low at $0.537. In such a case, a daily candlestick close below this foothold without a swift recovery will invalidate the bullish thesis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.