Unfortunately for its holders, Algorand couldn’t escape the fate of the whole cryptocurrency market, which took a deep dive on the day that turned out to be the third biggest crash in its history. But this shouldn’t have come as a surprise for traders who have the knowledge of basic trading patterns. In that case, we have been witnessing the emergence of the head & shoulders reversal formation that had been building up for the duration of the last three months.
ALGO price action over the past ninety days
Certainly, no one could have anticipated such an extremely abrupt price degradation, which amounted to 65% in just two days, but the seasoned traders must have placed stop-losses wisely, which helped them avoid losing a big chunk of capital and even buy back substantially more ALGO once the price reached the all-time low at $0.105 on March 13, the second day of the crash.
Those who weren’t foresighted enough are now forced to wait for the crisis to pass or devise trading strategies that could somehow help to cover the massive losses, at least partially.