Algorand (ALGO) has remained trapped in a persistent downtrend, but there may be an opportunity for traders watching key levels.
Sjuul from AltCryptoGems notes that ALGO’s consistent pattern adherence makes current levels worth watching closely.
ALGO Price Respects Descending Channel Structure
An unstoppable whirlpool has caught ALGO’s price, pulling it downward into the bounded, downward-sloping channel. This channel is not just suggestive; it is indeed a prison. Every effort to break away gets caught at the upper boundary, while the lower boundary stops any rebound half-way. At time, it may look like chaos, but it is a chillingly predictable dance as the bears dictate the rhythm. Every crest and trough counts; every support and resistance level becomes a battlefield in the unfolding struggle.
While everyone attentively focused on that level at $0.175, it is not simply a price point. Rather, it has become a battleground. Here, the midline of the channel and firm horizontal support join together to form a crucible within which the next major move is likely to be forged. Will it hold? Will it break?
Source: X
For scalpers looking to make a fast buck, the dollar-fifteen-cent mark may spring a quick rally. They should watch for a bounce it might propel a quick surge back to the channel top.
Liquidation Data Shows Reduced Recent Volatility
ALGO’s liquidation ledger offers a brutal view of the market. From mid-November to early February, liquidation quakes did their act with destruction, unsettling both bullish longs and bearish shorts in their tremors.
Source: Coinglass
Notable events occurred in early December and early February, where liquidations exceeded $2 million.
Post March, behind the arrival of calmer waters seemed to lie the waning tsunami of mammoth ALGO liquidations. This suggests a recent change: leverage dared perhaps less, and ALGO had a smoother ride compared to what it endured in the months prior to that. Watch out for $0.20, the apparent bedrock for ALGO; $0.30 is the ceiling it struggles to break through. These are the sides to watch.
Momentum and Indicator Insights
ALGO/USD daily price chart, Source: TradingView
The ALGO stands on the precipice. Sometimes, a meaningless reprieve that lasts for a weekend may flicker, but it’s the peril beneath-the-surface. With a $0.1997 price tag, ALGO’s MACD spells doom: the MACD line lies entrenched beneath the signal line with a widening negative histogram acting as a gloomy shadow. This is not some little dip; this is a descent, and it tells us in no uncertain terms that the bears are in a tighter grip. Strap in for some wild waves ahead.
The RSI is at 46.04, so it is nudging a tick towards the oversold territory. Is the selling pressure finally running out of steam? Perhaps the bears are losing their grip, but the bulls do not seem to be charging in yet. We might all be waiting for that definitive sign of a turnaround.
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