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Algorand (ALGO) Scrambles For Support After Breakdown From 791-Day Support Line

1 min
Updated by Kyle Baird
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In Brief

  • Algorand has broken out above an ascending support line.
  • There is long-term support and resistance at $0.23 and $0.70, respectively.
  • ALGO could be trading inside a descending parallel channel.
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Algorand (ALGO) made a failed attempt at initiating a bullish trend reversal on June 15 and created a long upper wick.

Algorand has been falling since reaching an all-time high price of $2.99 on Nov. 18, 2021. The downward move has so far led to a low of $0.27 on June 15, 2022. This amounted to a decrease of 89% measuring from the all-time high. 

More importantly, the price broke down from the $0.70 horizontal area at the beginning of April. It then validated the area as resistance (red icon) and broke down from a long-term ascending support line by the end of the month. Prior to the breakdown, the line had been in place for 791 days. 

If the downward movement continues, the closest support area would be found at $0.20.

ALGO decreases gradually

ALGO enthusiast @Crypt0forchange tweeted an ALGO chart, stating that despite the slight bounce, the daily candlestick is shaping up to be bearish.

In the daily time frame, the price has been decreasing gradually since May 12. It’s possible that the decrease has been contained inside a descending parallel channel. 

While ALGO attempted to initiate an upward movement on June 15, but was rejected by both the resistance line of the channel (red icon) and the $0.36 horizontal area, creating a long upper wick in the process. This is a bearish sign, since the $0.36 area is now expected to act as resistance. 

Furthermore, the RSI is below 50 and has not generated any sort of bullish divergence.

So, it’s possible that the price will continue falling towards the previously outlined $0.20 horizontal area. 

A breakdown from the current descending parallel channel would confirm this possibility.

For Be[in]Crypto’s latest bitcoin (BTC) analysisclick here

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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