- Algorand price sees its price action fall back to $0.43.
- ALGO price gets support from a historic pivotal level and the monthly S1 for now.
- In case bears make a breakthrough to the downside, expect to see a 50% drop towards $0.23.
Algorand (ALGO) price is set to drop below $0.43 support and the monthly S1 pivot level. The recent turmoil in the stock market is seeing investors pull out their money and go into cash and bonds. The down move is being contained for now, as the dollar trades sideways, but once it strengthens, expect to see an exponential move to the downside for ALGO price towards $0.23.
ALGO price set to drop from $0.45 to $0.23
Algorand price was set to rally back to $0.60 but got cut short in its tracks overnight during the US trading session as a firesale occurred in stock markets. With the Dow Jones dropping back to the low levels from 2020, investors are mulling over where to put their money to work as cryptocurrencies are falling out of grace. On the back of that, expect to see more outflows with Algorand bleeding and devaluing back to its lowest level of 2021.
ALGO price sees bearish pressure mounting on $0.43, a historic pivotal level, and the monthly S1 support line. If bears can squeeze bulls out of that region, a new area of almost 48% could open up for another decline. Expect to see a nosedive move in another round of investor pullbacks and $0.23 to provide support followed by the monthly S2.
ALGO/USD daily chart
On the other hand, a significant catalyst could kick off a turnaround in global sentiment, in a situation where, for example, inflation got tamed across the globe. If that happens, central banks would need to be less hawkish and have less tighter monetary conditions, opening up more room for spending and supporting the economy, as well as global markets. That would see an inflow back into cryptocurrencies with a quick run up towards $0.69, hitting a quadruple top with the 55-day Simple Moving Average (SMA), the red descending trend line and a historic pivotal level coinciding with the current monthly pivot.
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.
Recommended Content
Editors’ Picks
PancakeSwap loses nearly 3% value intraday as the DEX crosses $1 billion in trade volume
Decentralized exchange (DEX) PancakeSwap (CAKE) announced in an official tweet that it has crossed $1 billion in trade volume on the Layer 2 chain, Base. CAKE on-chain metrics support the thesis of a recovery in the DEX token’s price.
Shiba Inu hits new milestone, over $9 billion worth of SHIB tokens burnt
Shiba Inu (SHIB), the second-largest meme coin in the crypto ecosystem, recently hit a milestone in the volume of tokens burned. Shiba Inu has burnt over 410.72 trillion SHIB tokens since the inception of the burn mechanism in the project, worth over $9 billion.
Dogwifhat crashes 60%, but here's why you should not buy WIF yet Premium
Dogwifhat (WIF) price shows a slowdown in the bearish momentum as it sets up a potential range. This development could lead to a good buying opportunity from a long-term perspective.
XRP struggles to overcome $0.50 resistance, SEC vs. Ripple could enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.