ALGO/USD set to break above $1.5 soon

TL;DR Breakdown

• Algorand price analysis is bearish today.
• ALGO/USD is currently trading at $1.05.
• Selling pressure has returned overnight.

The Algorand price analysis is bearish today, as we saw a rejection for additional upward momentum at the $1.05 mark and a reaction selloff. As a result, we expect ALGO/USD to retrace and establish a new low over the following few days.

The Algorand price analysis shows that ALGO/USD has established a lower high at the $1.05 mark, indicative of downward momentum. SMA 200 further reinforces support on the four-hour timeframe, which will serve as a critical line of defense should selling pressure continue to ensue. If this support level is breached, the further downside might be in store.

Additionally, the relative strength index (RSI) indicates that selling pressure is returning on the four-hour timeframe. The RSI has dropped below the 50 handle, which signals consolidation is likely to ensue for ALGO/USD over the following few sessions.

Algorand price movement in the last 24 hours: Algorand begins to reverse

The long-term outlook for ALGO/USD is currently bearish. This assumption is supported by the Fibonacci retracement line applied to the corrective wave up from $0.53 and a drop below the 50-day moving average (MA).

Long-term, the Algorand price analysis is bearish. This assumption is based on the Fibonacci retracement level applied to the corrective wave up from $0.53. This particular Fibonacci retracement line coincided with strong selling pressure yesterday and will likely be a key support level for ALGO/USD going forward.

There is a chance that ALGO/USD will consolidate at these levels for some time before establishing a new low over the coming weeks. These price movements are also in line with our previous Algorand price analysis, where we highlighted a possible return of selling pressure as prices consolidated between $0.71 and $1.05.

ALGO/USD 4-hour chart: ALGO retest upside for the last time

On the 4-hour chart, we can see the Algorand price action retesting earlier today’s upside briefly before resuming its downward motion.

Over the last weeks, Algorand’s price action has shown modest bullish momentum. Yesterday’s ALGO/USD chart showed a notably stronger high near $1.05 after consolidation between $0.9 support and $1 resistance.

It appears that ALGO/USD might retest resistance at $1 before continuing its descent lower. The RSI supports this assumption on the four-hour timeframe, demonstrating how buyers are beginning to lose momentum near resistance.

Overall, this Algorand price analysis shows pressure returning overnight. The next few days will determine if further downside movement is in store for ALGO/USD or if these levels will provide temporary support for prices.

The MACD on the 4-hour chart has established a positive divergence, suggesting that prices might retest resistance at $1.05 before continuing their descent lower. The RSI supports this assumption on the four-hour timeframe, demonstrating how buyers are beginning to lose momentum near resistance.

Likely we will see the Algorand price retracing over the next few days. Once a higher low is set again, ALGO/USD will likely be ready to post much more substantial gains by the end of next week.

Algorand price analysis: Conclusion 

Algorand price analysis is bullish, eagerly waiting for new highs. ALGO/USD to find support at $0.71, and we might see the Algorand price retracing over the next few days before setting a higher low again, where we will likely wait for much more substantial gains by the end of next week.

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