Algo price has been in a bearish trend ever since it attempted to retest the annual high of $0.2995, but was unsuccessful. The cryptocurrency price faced strong rejection from $0.2850, which provoked a drop in the price. The price melted to $0.1850 and formed a support, which was also broken after price retraced back from $0.24 level.
In May, the price shattered the yearly low of $0.1712 and major support level of $0.16. After the move, it consolidated for a bit near $0.15, which was also not sustainable, and the price again had a downfall.
Recently, the price formed a support at $0.11 after the whole cryptomarket took a hit during the start of June. The price did retrace toward $0.14 to recover from losses, but faced strong rejection which pushed the price to the downside.
The previous candle had closed as a strong bearish candle and the current candle has broken the low, but it is still bullish. The BTC price yesterday closed below $30000, which induced a negative sentiment in the Altcoins and had a downfall.
If the price can successfully form a strong support, it can target the minor resistance level of $0.13 and progressively head toward the major resistance zone of $0.14. On the other hand, if a candle can break and close below $0.11, there is a possibility that the price might fill the lower wick of the June 10 candle and head toward $0.09 causing a loss of -18.13%.
Algorand Blockchain Game Changing Upgrade
Algorand has activated a major network upgrade called Go-Algorand 3.16, which has been released with the aim of improving overall performance, finality time and developer experience of the blockchain. The upgrade is successful in reducing block latency to an impressive 3.3 seconds. This has led to 10% refinement in network performance, without compromising decentralization.
Will ALGO Price Decline to $0.09 if Bearish Momentum Persists?
The cryptocurrency price trades below 20,50,100 and 200-day EMAs indicating bearish momentum in the price. Chaikin money flow score has crossed below 0 mark and currently trades at -0.07 suggesting weakness in the market.
RSI trades at 38.76 and has started to dip suggesting bearish momentum in the price. The long/short ratio is 0.98 with 49.5% longs and 50.5% shorts implying there is slightly higher pressure from bears in the last 24 hours.
Conclusion
The market structure and price action for Algorand has turned bearish after facing rejection from the $0.13 level. The technical parameters suggest bearish influence over the price. If a break of $0.11 happens, the price might head down toward $0.09.
Technical levels
Major support: $0.11 and $0.09
Major resistance: $0.14 and $0.16
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/07/algorand-price-prediction-algo-price-falls-below-20-day-ema/