Algorand [ALGO] experienced significant price surges during the month of November. The highly anticipated “Uptober” phase, characterized by a bullish October, witnessed ALGO trading consistently around the $0.117 support level. Throughout November, ALGO has surged by an impressive 97% thus far.
Although there is a potential for a pullback due to a bearish discrepancy between price and momentum, recent robust buying activities indicate that any downward movements are likely to be brief and limited.
Is the Long-term Downtrend Still Influencing ALGO’s Performance?
A comprehensive analysis based on the downtrend observed from March to August involved plotting a series of Fibonacci retracement levels.
These levels revealed that the $0.2397 and $0.2794 price points, corresponding to the 61.8% and 78.6% retracement levels respectively, are crucial resistance thresholds for ALGO bulls to overcome.
In the immediate short-term, specifically within this week, the current Algorand price forecast leans towards a bearish stance. This is primarily due to the potential overextension of the market, coupled with the emergence of a bearish divergence in the RSI indicator.
While Bitcoin [BTC] continues to hold above $90k, the overall sentiment in the cryptocurrency market remains positive. However, a drop in BTC valuation below $89.5k could trigger heightened short-term selling pressure.
While a retracement to the $0.16 level might present an enticing buying opportunity, the current market conditions suggest that such a significant decline may not materialize. The $0.184 and $0.209 price levels serve as the closest support zones to monitor for potential price movements.
Predicting Algorand’s Price Movement: Is a Bullish Reversal on the Horizon?
Recent observations indicated a series of substantial liquidations around the $0.205 threshold, a price point that Algorand recently revisited.
This liquidation event is expected to yield a positive response in the next 2-3 days, potentially propelling ALGO towards the $0.235 region.
In case the price drops below $0.205, the $0.178 and $0.167 levels are also notable areas with significant attraction, holding the potential for a bullish reversal in the weeks ahead.
Disclaimer: The views expressed in this analysis do not constitute financial, investment, trading, or any other form of advice and solely reflect the author’s personal opinion.