Algorand price prediction – How far is recovery for the altcoin?

• ALGO’s downtrend maxed out at 34%, however hit the important thing $0.40 demand zone
• Will the pattern reverse itself on the assist amid weak demand? 

Algorand’s [ALGO] value pullback hit 34% after dropping from $0.61 to $0.40. The decline adopted a slight strengthening of Bitcoin’s [BTC] dominance, pausing a lot of the altcoin market’s momentum, not less than briefly. 

ALGO stabilized above $0.40 through the early December liquidation cascade, which massively affected the altcoin sector. Will this stage reverse the continuing downtrend? 

ALGO – Will $0.40 maintain?

Supply: ALGO/USDT, TradingView

The $0.40 space additionally doubled as the worth imbalance set in late November and has been a key demand zone. Nonetheless, the final sturdy bounce from the zone, cyan, was rejected on the channel’s vary excessive. 

At press time, the worth motion was again on the zone and will keep on the stage given the low demand, as illustrated by the below-average RSI studying. 

Moreover, capital inflows improved however had been nonetheless under the important thing stage to assist reverse the downtrend. In reality, inflows in December remained under zero stage, as proven by the CMF (Chaikin Cash Movement). 

Taken collectively, a bounce at $0.4 would possibly face one other value rejection on the higher channel ($0.43) if these key technical indicators stay muted. 

If the promoting stress extends itself and ALGO breaches the $0.40 assist, the following reprieve may very well be at its March excessive of $0.33. 

Will shorting yield positive aspects?

Supply: Coinalyze

On the 4-hour chart, SuperTrend hasn’t reset the promote sign flagged on 9 December. It meant that shorting ALGO made extra sense than going lengthy as its downtrend prolonged. 

The flat demand from the spot market, as strengthened by the low CVD spot, supported the brief sellers’ edge available in the market. 

Learn Algorand [ALGO] Worth Prediction 2024-2025

In conclusion, ALGO weakened over the previous two weeks as sellers piled into the market.

For bulls eyeing re-entry, a robust bounce at $0.40 or $0.33 may very well be an indication of value pattern reversal. Nonetheless, the bounce ought to be matched by sturdy demand, flows, and a decisive transfer above $0.43. 

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion