ALGO Price Warns Downfall Amidst Market Slowdown

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The bullish trend in the ALGO price fails to push through the overhead resistance at $0.24, resulting in a sharp reversal. Leading to a drop under the psychological mark of $0.20, Algorand shows a high-moment pullback phase threatening the formation of a bullish pattern.  

With a 21% drop within two weeks, Algorand is facing extreme selling pressure and warns of a deeper correction. Moreover, the market slowdown after the recent crash in Bitcoin warns of a similar bearish trend. 

Hence, the short-term viewpoint on the Algorand turns bearish and opposes the long-term bullish view in our ALGO price prediction. 

Source- TradingView

With the sharp increase in trading volumes, the ALGO price trend is facing a huge increase in selling pressure following the $0.24 failed breakout. Starting at the $0.24 mark, the downtrend results in a sharp fall, and Algorand loses the crucial base of $0.20. 

Moreover, the dominant sellers fracture the dynamic support of the 50D EMA, signaling a high momentum intense selling spree. The huge candles around the 50D EMA reflect an ongoing brawl at the crucial level. 

Further, the buyers are struggling to retain the rounding bottom pattern to rechallenge the overhead neckline. Currently, the ALGO price trades at $0.1860 with an intraday fall of 0.32%, following the 7.85% drop last night. 

The last night’s bearish engulfing candle completes an evening star pattern, but the lack of crucial resistance limits its credibility.

Technical indicators:

RSI: The daily RSI line shows a sharp fall from the overbought zone to cross below the halfway line, reflecting a selling spree in motion. Hence, the momentum indicator shows a strong bearish motion in action.

Will ALGO Price Recover $0.20?

The altcoins are under stress as the market slows down despite the high bullish sentiments last week. As the bears overtake, the reversal chances are minimal. However, the ALGO price chart shows a strong pattern, and buyers might be able to diffuse the tension with a short consolidation. 

In such a case, the buyers can fight back, recover trend control from surpassing $0.20 and challenge the $0.24 neckline. On the flip side, a downfall to the 200D EMA will nullify reversal chances.