ALGO shows no signs of stopping its downtrend, but sellers can take profits at…

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

  • The technical indicators signaled extra losses for ALGO
  • Algorand has already tagged assist from March 2020, and the bears stay relentless

The previous ten days of buying and selling didn’t see a lot value motion develop, as most property within the crypto markets traded inside a decent vary. Preceding this calm, a bearish storm had been raging for a lot of altcoins.

Read Algorand’s [ALGO] Price Prediction 2023-24

Algorand was one of them. After shedding the $0.28 stage of assist, the sellers have been emboldened to push costs additional south. Fibonacci extension ranges and horizontal assist ranges indicated the place merchants may search for a bounce in costs.

Algorand sellers stay in energy, patrons nowhere to be discovered

Source: ALGO/USDT on TradingView

Algorand holders have skilled a drawdown of 34% in December alone. ALGO had traded inside a variety from May to November, but the extreme promoting in early November pressured a crash in costs. The lows of that vary lie at $0.28, which was a great distance north of $0.163 the place Algorand has discovered assist at press time.

This assist stage served as resistance again in March 2020 as properly, and additional south one other stage of assist was discovered at $0.144. The Fibonacci extension ranges confirmed $0.169 was prone to be resistance, and that bears can anticipate a push towards $0.15 or decrease.

The Relative Strength Index (RSI) has been beneath 40 to suggest heavy bearish momentum for the previous two weeks. The On-Balance Volume (OBV) has additionally been in a gradual decline. The bulls have no respite, and the sentiment was firmly in favor of the sellers.

How many ALGOs can you get for $1?

Long-term buyers should train warning. Dollar-cost averaging won’t work, for there was no certainty that Algorand was close to its long-term backside. It could possibly be higher to attend for the upper timeframe development to flip bullish earlier than trying to purchase.

Open Interest in decline whereas the short-term image confirmed a bearish inclination

The bearish bias of Algorand remains strong, here are some southward targets

Source: Coinglass

It was bearish euphoria throughout for Algorand. After the sturdy rise in Open Interest in early November, following ALGO’s rally from $0.348 to $0.42, the OI has plunged. The value has additionally plummeted 61% for the reason that prime at $0.426.

The persistent decline in OI since 21 November, alongside the slumping costs, meant lengthy positions have been liquidated. No new cash of a major quantity entered the market. Each section the place the OI appeared to stabilize was adopted by a plunge.

The bearish bias of Algorand remains strong, here are some southward targets

Source: Coinglass

The inference was that the downtrend had not but halted. Price motion from the decrease timeframes confirmed that ALGO had shaped a variety between $0.173 and $0.165 over the previous week. Even the lows of this vary stand damaged at press time. The lengthy/brief ratio stood skewed in favor of the sellers.

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