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- Algorand (ALGO) price declined below an important demand area.
- At that point, the 20-day moving average remains above the current price.
- The market capitalization fell by 3.04% to $1.59 billion overnight.
Algorand (ALGO) failed to meet buyers’ expectations in the recent crypto market crash. Traders saw a fall of around 35% in the first seven days of November. Even the price of ALGO has been down repeatedly since November 1st, which pushed the bearish trend towards the latest yearly low and the bears recorded a decline of around 30% according to the monthly red candlestick.
Undoubtedly, Algorand price is under strong selling pressure as the bears are pulling a fifth bearish candle this week. As a result, ALGO price declined below a critical demand area (gray box). The $0.25 to $0.28 area has turned into an immediate bullish hurdle and the bulls should take a step further to propel the price higher.
There is no investment opportunity for long-term outlook as Algorand price is hovering nearly its latest annual lower level. More selling likely until the next round level of $0.20 before any rapid bounceback. Notably, Market capitalization fell 3.04% overnight, spotted at $1.59 Billion.
While following the seller’s order, the Algorand coin trades at $0.2235 mark at the time of writing. Last night, bears hit another 52 week low $0.2171. Traders are not confident for any upside trade at this level due to the bearish market scenario. Bulls failed to maintain assets above 20 DMA on 8 November, hence the 20 day moving average is remaining above the current price so far.
The trading volume looks neutral at $57 million as per data from the last 24 hours. However, there is low volatility as the RSI indicator continues to move towards the oversold zone on the daily price chart. On the other hand, the MACD is slowly expanding higher in the negative zone.
Conclusion
Today the bulls swung into action and Algorand moved higher by 1.22%. This is due to short-covering and still market sellers are active in the market and target the 0.20 support level.
Support level – $0.20
Resistance level – $0.30 and $0.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
