The Algorand price has been downward for quite a few months now. The coin has fallen by 1.8% over the last 24 hours. The coin has lost over 4.7% of its market value in the past week. Algorand had been consolidating on its chart over the last few weeks, but the consistent lateral trading has pushed the bulls out of the market.
The technical outlook has sided with the bears, with no clear indication of the price turning around in the coming 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. The Algorand price has also remained unaffected by positive changes in major market movers’ prices.
Since the altcoin was rangebound for a while, buyers lost interest and rushed to sell the altcoin. Algorand has lost over 30% in the month of December itself. At the time of writing, the ALGO price is 96% below its all-time high from 2021. The market capitalization of Algorand has witnessed a considerable decline, indicating that sellers have completely taken over the market.
Algorand Price Analysis: One-Day Chart
ALGO was auctioned for $0.166 at press time. The immediate resistance for the altcoin was at $0.172. The coin has attempted to test the overhead price ceiling, but the bearish strength has taken over the market. Since demand for Algorand has fallen substantially, the altcoin can fall to $0.163 before the price reverses itself.
This could present traders with a shorting opportunity. Two crucial resistance levels were at $0.177 and then at $0.181. Moving above the $0.181 mark will help the coin target the $0.20 price. On the flip side, a fall from the present price level will bring the Algorand price to the $0.15 zone. The amount of ALGO traded in the last session was red, indicating a high selling volume at the time of writing.
The altcoin has depicted a death cross at the end of November, which is an extremely bearish signal. 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 over the 20-SMA line. Ever since the death cross, ALGO has been under the grasp of sellers.
The Relative Strength Index stood on the 30-line, a sign of the asset being oversold and undervalued. Similarly, the Algorand price was below the 20-SMA line as sellers continued to drive the price momentum in the market.
Although all indicators pointed toward bearish strength, the Moving Average Convergence Divergence (MACD) indicator displayed green signal bars. MACD indicates price momentum and reversals; the green signal bar was tied to buy signals.
This could mean buyers can re-enter the market now as ALGO could reverse its price. However, it is completely uncertain if ALGO will recover soon. The Parabolic SAR suggests the price direction. The indicator formed dotted lines above the candlesticks, which meant a continued downtrend for the asset.
Featured Image From Unsplash, Charts From TradingView.com