ALGO price is seeing a severe decline in value after breaking the support level on the daily timeframe. Presently, It is undergoing a 41% fall in value after breaking the $0.1500 zone. The price will require concrete buyer support in order to make a favorable recovery.
Despite making several attempts to defend the price above the support zone, bulls have lost control of the market. The price of ALGO currently displays a bearish red candle which implies that there is a substantial presence of buyers in the market.
The current value of the ALGO token is $1.110 and it has a market cap of $799.79 Million.
Investors Showing Bullish Optimism
Investors regarding the ALGO tokens are witnessing an abrupt appreciation of bullish sentiments. According to LunarCrush, a major gain of 43.09% in total bullish sentiment has been observed.
Total social engagement has surged significantly by 175.9% which suggests that the community is diligently engaged with the ALGO coin across social media platforms. The 24-hour trading volume has appreciated by 86.77%, indicating that buying and selling activity among investors are on the rise.
Slight Reduction in the Total Value Locked of ALGO Token
Source: ALGO/USDT by DefiLama
The TVL of the ALGO coin has been trending upwards as illustrated in the picture above. Presently, it is experiencing a slight drop in value, but the TVL is yet to break below its prior support zone. The current TVL of ALGO is 85.74 Million with a change of -2.57% in the 24-hour volume.
Technical Analysis of ALGO Price
The RSI line is presently trading near an extremely oversold level in the red zone after crossing below 14 SMA. The RSI line is moving near 15.08 points and the 14 SMA is providing resistance to it at around 25.34 points.
The stochastic RSI is consolidating near the demand zone suggesting a bullish trend. %K line in Stochastic RSI is yet to give a positive interception to the %D line near the demand level.
Conclusion
The price of ALGO is currently moving below the major EMA and MA levels. Investors looking at the ALGO tokens are witnessing an abrupt increase of bullish sentiments. According to the price action, investors can expect a further decline in the value of the token before it makes a recovery.
Technical levels
Support – $1.100 and $1.000
Resistance – $1.500 and $2.000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/12/algo-price-analysis-algo-price-fell-by-20-what-to-expect/