The Algorand (ALGO) price has decreased since its all-time high in September 2021. It fell to a new all-time low of $0.08 on August 17.
While no bullish reversal signs are in place, a breakout from a long-term descending resistance line could trigger a significant price increase.
Algorand (ALGO) Price Falls to All-Time Low
The ALGO price has decreased since its all-time high price of $2.99 in September 2021. The downward movement followed a descending resistance line, which has so far been in place for 700 days. More recently, the price validated the line in April 2023 (red icon).
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While the ALGO price initially bounced at the $0.11 horizontal support area, it eventually broke down. On August 17, a bearish movement encapsulated the cryptocurrency market, and the price reached a new all-time low of $0.08. However, despite the all-time low, the ALGO price has not yet closed below the $0.11 area. Therefore, the possibility of a reclaim and a bullish trend reversal still remains in place.
The weekly RSI is undetermined. The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold, and to determine whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage. Readings below 50 indicate the opposite.
While the RSI is below 50 and decreasing, it is possibly in the process of generating a bullish divergence (green line). This occurs when a momentum increase follows a price decrease. It often precedes bullish trend reversals. However, the price has not confirmed the divergence yet.
Where to Next After All-Time Low?
Since the price is at an all-time low, using Fib levels is required to determine the next support level in case the ALGO price breaks down.
Measuring the previous increase, the 1.61 external Fib falls at $0.07. Therefore, the price could find support there in case it resumes its descent. This would amount to another 25% drop measuring from the current price.
On the other hand, reclaiming the $0.11 level and breaking out could lead to a 200% increase to the next resistance at $0.30.
To conclude, the future ALGO price trend will be determined by whether ALGO reclaims the $0.11 area or resumes its decent. The price can increase by 200% in case of a reclaim, but a 25% drop is expected if the decrease continues.
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