The Algorand price has been on the downside for quite a few months. The coin has fallen 1.8% in the last 24 hours. The coin has lost more than 4.7% of its market value in the past week. Algorand has been consolidating on its chart for the past several weeks, but the constant sideways trading has driven the bulls out of the market.
The technical outlook has sided with the bears, with no clear indication of price turning in the upcoming trading sessions. Ever since ALGO lost the $0.28 price level, the coin has been unable to stop its downtrend. The aforementioned price floor acted as a crucial level for the altcoin. Algorand’s price has also not been affected by positive changes in the prices of the main market movers.
Since the altcoin was range bound for a while, buyers lost interest and rushed to sell the altcoin. Algorand has lost more than 30% in the month of December. At the time of writing, the ALGO price is 96% below its 2021 all-time high. Algorand’s market capitalization has seen a significant decline, indicating that sellers have completely taken over the market .
Algorand Price Analysis – One Day Chart
SOMETHING was auctioned for $0.166 at press time. Immediate resistance for the altcoin was at $0.172. The coin has attempted to test the overhead price ceiling, but bearish force has taken over the market. Since demand for Algorand has dropped substantially, the altcoin may drop to $0.163 before the price reverses.
This could present traders with a short selling opportunity. Two crucial resistance levels were at $0.177 and then $0.181. Moving above the $0.181 mark will help the coin target the $0.20 price. On the other hand, a drop from the current price level will take the price of Algorand to the $0.15 zone. The amount of ALGO traded in the last session was in the red, indicating a high volume of sales at the time of writing.
The altcoin has pictured a death cross at the end of November, which is an extremely bearish sign. A death cross occurs when the long-term moving average moves above the short-term moving average.
In the case of the Algorand price, the 50 simple moving average (SMA) had crossed the 20 SMA line. Since the death cross, SOMETHING has been under the control of the sellers.
The Relative Strength Index was at the 30 line, a sign that the asset is oversold and undervalued. Similarly, the Algorand price was below the 20 SMA line as the sellers continued to drive price momentum in the market.
Although all indicators pointed to bearish strength, the Moving Average Convergence/Divergence (MACD) indicator showed green signal bars. MACD indicates price momentum and reversals; the green signal bar was tied to buy signals.
This could mean that buyers can re-enter the market now as SOMETHING could reverse its price. However, it is completely uncertain if ANYTHING will recover soon. The Parabolic SAR suggests the direction of the price. The indicator formed dotted lines on the Japanese candlesticks, which signified a continued downtrend for the asset.
Featured Image from Unsplash, Charts from TradingView.com