ALGO/USD bearish for the next 24 hours

TL;DR Breakdown

• The Algorand price analysis is bearish today.
• Support for ALGO is present at $1.21.
• ALGO/USD is currently trading at $1.42.

The Algorand price analysis reveals that the price has been falling for the previous few days, with bears continuously attempting to take the lead and bearish pressure weighing on the value function. The short-term trending line has also plumbed due to the past five days’ worth of price decreases. As a consequence of this most recent bearish assault, the cost has fallen by another $0.25 to $1.35. In the coming hours, more drops in value are anticipated.

The rise came with some bitterness for those who had not expected it, and there was a significant decrease in value after this rally ended on January 5th. ALGO has seen continued declines that waves of volatility have accompanied in the following two weeks. However, they weren’t as noteworthy as this past week’s spree of volatility, which saw the price decrease by nearly $0.50 over a few days.

This past week has been relatively interesting for holders of ALGO assets because there is now an opportunity to purchase items at rates significantly lower than what they were just about two weeks ago. However, now that the price has stumbled, it’s safe to assume that sellers will attempt to make their moves early and aim for a lower value.

The Algorand price analysis shows that the currency is currently valued at $1.40, which suggests that there is still some bearish pressure holding sway over the market; however, this may not last much longer if the support zone is near $1.21 continues to prop up asset values.

ALGO/USD four hour price analysis: Recent developments

The four-hour chart for ALGO/USD shows that bulls are attempting to make a comeback and climb above $1.42, which means that there is a chance that they will achieve this goal in the next few hours before bearish pressure intensifies again.

The Algorand price analysis reveals that bears have been on a rampage of late because of significant volatility in both directions over the past week. It appears as if they may be attempting to push for something more from those who hold Algos now so they can pocket some quick gains now while everyone is distracted by the latest news.

Algorand price analysis shows that there has been a recent increase in volatility. Still, it looks like the downtrend might have more volatility coming with it shortly because prices haven’t increased significantly yet, so sellers could attempt to drive down these asset prices further before buyers take action and can halt their plans. It’s certainly worth noting that the Relative Strength Index (RSI) value has dropped down into the index 40 values which means that the currency is currently being oversold, so now would be a good time to buy into it.

The Bollinger bands have been contracting as sellers have been pushing down on prices, which has caused ALGO to become more volatile. The price line is below the bands compared to the previous day when they were only touching them slightly. There’s also a small green candle which suggests that we may see an increase in volatility and an attempt at another rally up to $1.48 or higher depending on how much volume is transacted across exchanges after this drop ends and before it recovers back above $1.21 again.

ALGO/USD 4-hours price chart. Source: TradingView

When looking at the long-term, the currency seems to continue its downward trajectory until something changes for the better or support levels are breached around the $1.21 mark.

If there is no change in here, then we could expect prices to drop below our current one-day support level at $1.35 and head towards the next support level, which can be found close to $1.20 before sellers will attempt to make another rally back up again near these resistance lines.

Algorand Price Analysis: Conclusion

The one-day and four-hour Algorand price analysis confirms a downtrend because the price is currently being oversold, so it may be a good idea to buy into this asset now. ALGO will likely establish an uptrend if prices are driven above $1.48 because market sentiment should switch then, and buyers may start taking action instead of sellers.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.