Bitcoin
BTC$47 909.19

1.25%

Ethereum
ETH$3 403.28

-0.03%

Cardano
ADA$2.35

0.60%

Binance Coin
BNB$407.56

0.47%

Tether
USDT$0.999719

-0.01%

Solana
SOL$169.00

15.95%

Algorand Trading Sideways After Recovery


#Algorand

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.

But perhaps not a single strategy could be of any help to those who acquired ALGO in the first days after its listing on cryptocurrency exchanges, which happened in June 2019, when the price had leaped to it’s all-time high at $3.56, which is 96% from its current price of $0.153, as of the time of writing.

ALGO stands at the crossroads


After the two dark days of the market meltdown, Algorand followed the footsteps of other cryptocurrencies, which had made a partial recovery. When it came to ALGO, this recovery constituted around 20% - speaking in plain numbers, it went from the mentioned low at $0.105 to $0.1685 in a span of one day, whereupon it went into a tedious consolidation phase, trading in the range between $0.1288 and $0.1668.

1-day ALGO/USDT chart

All in all, we see a classic bearish flag formation on the daily time frame, which appears to be striving to resolve to the upside. This conclusion was made on the basis of Stochastic, which has finally made a bullish crossover and appears to be exiting the oversold region and passing the -25 line. Although one shouldn’t expect this move to be of a strong kind since the momentum oscillator has barely touched -0.2, while ATR is still at the extreme lows.

Therefore, if the upward move does occur, it shouldn’t take ALGO higher than the top of the upper shadow on a previous daily candle, which touched the level at $0.1894 that also served as firm support from September till December of 2019.

4-hour ALGO/USDT chart

The 4-hour time frame reveals that there’s also not much going on with ALGO apart from it closely approaching the 50-period EMA but ultimately failing to turn it into a support line, which could have given traders hope at the looming bullish phase.

But even if the breakout does occur, it is likely to stumble upon a tough resistance between $0.185 - $0.2 and then go bouncing off the 50 EMA. However, a piece of single news about the new wave of coronavirus pandemic could crash the price of ALGO, and all other cryptocurrencies, back to the all-time low, and beyond, in a matter of hours - that’s just the reality we are living in right now.

Author: Alex Paulson for Crypto-Rating.com

Related

Algorand (ALGO): The Ominous Three Black Crows Threaten the Range
Algorand (ALGO): The Ominous Three Black Crows Threaten the Range
Algorand (ALGO): The Upgrade Expectations Pushed the Price to Year’s High
Algorand (ALGO): The Upgrade Expectations Pushed the Price to Year’s High
Algorand (ALGO) Stands Stock-Still In Front of Resistance
Algorand (ALGO) Stands Stock-Still In Front of Resistance
Algorand (ALGO) Price Prediction for 2020
Algorand (ALGO) Price Prediction for 2020
Algorand (ALGO) Price Prediction
Algorand (ALGO) Price Prediction

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 87.6% 18 $47 909.19 1.25% 6.49% $901 641 061 708 $28 050 036 805
2 Ethereum (ETH) ETH Ethereum predictions 74% 50 $3 403.28 -0.03% 4.43% $400 159 822 847 $15 622 649 240
3 Cardano (ADA) ADA Cardano predictions 70% 67 $2.35 0.60% -7.85% $75 357 799 161 $2 088 968 420
4 Binance Coin (BNB) BNB Binance Coin predictions 63.6% 70 $407.56 0.47% 1.25% $68 526 382 470 $1 286 561 409
5 Tether (USDT) USDT Tether predictions 91.2% 1 $0.999719 -0.01% -0.08% $68 273 294 138 $59 325 016 988
6 Solana (SOL) SOL Solana predictions 56% 90 $169.00 15.95% -4.00% $50 188 146 941 $5 525 090 300
7 XRP (XRP) XRP XRP predictions 69.2% 60 $1.069665 -0.34% 0.13% $49 870 165 652 $2 257 392 576
8 Polkadot (DOT) DOT Polkadot predictions 63.2% 81 $33.88 2.15% 6.78% $33 459 890 032 $1 816 386 745
9 Dogecoin (DOGE) DOGE Dogecoin predictions 62% 75 $0.239076 -0.82% -0.97% $31 399 746 530 $979 904 892
10 USD Coin (USDC) USDC USD Coin predictions 93.6% 1 $0.999641 -0.02% -0.06% $29 376 366 391 $2 105 784 383
11 UniSwap (UNI) UNI UniSwap predictions 68.4% 63 $24.35 0.43% 8.39% $14 893 602 037 $286 321 085
12 Avalanche (AVAX) AVAX Avalanche predictions 68.4% 69 $67.04 -5.17% 18.67% $14 768 791 649 $1 846 054 630
13 Terra (LUNA) LUNA Terra predictions 66.4% 64 $34.44 -1.18% -11.44% $13 834 117 320 $717 648 404
14 Binance USD (BUSD) BUSD Binance USD predictions 92% 1 $0.999598 -0.01% -0.06% $12 808 404 518 $4 836 734 186
15 Chainlink (LINK) LINK Chainlink predictions 73.6% 52 $27.94 0.69% 4.33% $12 672 882 341 $1 023 457 767

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2021 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.