During the month of November, Algorand [ALGO] experienced significant price surges. The optimistic “Uptober” period, characterized by a bullish trend in October, kept ALGO trading near the $0.117 support level. As November progressed, ALGO has surged by an impressive 97% thus far.
Although there is a bearish discrepancy between the price movement and the momentum, signaling a potential pullback, recent robust buying activities indicate that any setbacks are likely to be limited and brief.
Is the Long-term Bearish Trend Still Active?
An analysis of the downtrend witnessed from March to August involved mapping out a series of Fibonacci retracement levels.
These levels revealed that the 61.8% and 78.6% retracement benchmarks at $0.2397 and $0.2794 respectively represent significant hurdles for ALGO bulls to overcome.
For the immediate future, particularly this week, the Algorand price projection leans towards a bearish stance. This is attributed to a potential overextension in the market, compounded by the RSI showing a bearish divergence.
Given that Bitcoin [BTC] remains above $90k, the overall mood in the cryptocurrency market remains positive. However, if BTC dips below $89.5k, it could trigger increased short-term selling.
While a retest of the $0.16 level presents an appealing buying opportunity, the likelihood of such a significant drop seems less probable at the moment. Investors should closely monitor the $0.184 and $0.209 levels as the nearest support thresholds.
Anticipating a Bullish Reversal for Algorand Prices
Recent observations indicated a cluster of extended liquidations near the $0.205 range that Algorand recently explored.
This liquidation activity is anticipated to yield positive outcomes in the next 2–3 days, possibly propelling ALGO towards the $0.235 mark.
Should ALGO descend below $0.205, the $0.178 and $0.167 levels also present as attractive zones of interest that could spark a bullish turnaround in the forthcoming weeks.
Please note: The content provided is the writer’s personal viewpoint and should not be construed as financial, investment, trading, or any form of advice.