After plummeting below the $0.68 mark, Algorand [ALGO] hovered around the high liquidity range near $0.7 for over a week. The broader liquidations, however, led to the altcoin his journey south toward the $ 0.39 support accelerated.
While the current recovery was aimed at closing the 23.6% Fibonacci resistance, any close below 20 EMA (red) could be turned into unwanted short-term losses. As of going to press, ALGO was trading at $0.4767, down 2.63% in the past 24 hours.
ALGO 4 Hour Chart
After buyers shrunk near the $0.57 resistance, ALGO saw a series of bearish engulfed candles pulling the alt towards the $0.39 floor. This level has been providing a strong floor for over a year. The alt almost lost 56.87% of its value (from 8 May) and appeared on 12 May to the lowest level in 15 months.
Since then, the 23.6% Fibonacci resistance has revealed its stiffness by curbing buying rallies within the confines of the $0.49 level. If cap the recent rally has bearish rising wedge drawn on the 4 hour period. The altcoin ended up in a tighter phase given the current pattern adjacent to the lower trading volumes.
A possible movement among the $ 0.47-zone would make room for an unsolicited correction in the direction of the $ 0.45 $ 0.4- range. Because SuperTrend refused his bearish position change and the 50 EMA was an immediate threat, the buyers have little chance of an unrestrained recovery above $ 0.49.
The RSI continued its slow phase at the center continued and repeated short squeeze in the current price movements. A sustained close below the equilibrium could turn into an undesirable pattern outbreak on the ALGO card.
Furthermore, the CMF plunged below zero while he strove level -0.1 testing. A launch from this level could create possibly only hope for a bearish invalidation.
Given the confluence of the 50 EMA with the 23.6% level, the bears had a superior lead defending the $0.49 zone. AThe bulls, with rising wigopstelling had, the sales volumes increase significantly to ignore the sales trends.
Last but not least, the investors/traders should keep a close eye on Bitcoin’s movements as ALGO shares a 74% 30-day correlation with the king coin.
This post algorithm [ALGO]: Is the threat of another round of sales real?
was published first on https://ambcrypto.com/algorand-algo-is-the-threat-of-another-round-of-sell-off-real/