Algorandlevel 1 blockchain works Proof of stake with considerable scalability. Working in particular on the ecological aspect with the goal of zero carbon emissions, this network has a native token, the ALGO. In a relatively complicated context of the last few months, what about its price? This is an opportunity, in this new Crypto Nugget, your weekly Wednesday analysis, to analyze its recent evolution to try to draw the most plausible scenarios.
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A downward trend on a weekly scale
After a bullish movement that in recent months has brought ALGO close to $ 3, the decline that is currently resulting is no less. In fact, it is currently at its lowest level since July 2021. It is important to note that a key support is at $ 0.67. On several occasions, the asset has managed to hold itself above in order not to sink. But then, this time, is it different? Or will we have to deal with yet another rebound?
Since this is an important level, you will undoubtedly understand that in the event of its loss, it will be an important signal: that of a continuation of the bearish trend with a continuous presence of sellers on the markets. . In this case, the lows and peaks will always be descending and new downward levels will be sought. Obviously nothing is decided since we will have to wait for this to close candle weekly.
On the other hand, I invite you to look at the pivot area. It acts as a resistance as it converges with the previous peak. Therefore, to hope for a weekly-scale structure change, a close above $ 0.98 will likely be required. Or, in the ideal scenario, a net recovery from 1.02 dollar would be very interesting to testify this purchasing power which, I remind you, is not present at all on ALGO at the moment.
Is ALGO still bearish on a daily basis?
On a daily scale, we can observe a continuation of the weekly trend with the very first close below the previously identified level. So this would mean the consecration of the above bearish scenario? To be sure, we are not fully there as a support reinstatement movement is possible. However, this assumption deviates more and more in favor of a continuation of the downward movement. So what should we consider for the next few weeks?
If we see a continuation of the decline in the cryptocurrency market, ALGO will likely tend to follow suit with a break from its key level since last summer. In this case, here are the areas, former supports or resistances, on which the price could react:
So, here are the scenarios to look at in the context of a continued decline. But then, how about a re-entry into support and a weekly close of ALGO above that level? In this case, we can expect a return to $ 0.77, which is the most recent high. A breakout of this level with a new high would change the current pattern in case there is also an ascending low. So what to consider next? For now, the targets should be moderate with a return to $ 0.87 then a probable continuation of the rise to the previous weekly high of $ 0.98.
Here we are at the end of this analysis for the ALGO asset! As you can see, the trend is clearly bearish on a weekly and daily scale. The end of the week will therefore be important for this asset as we will potentially have a directional take. This will depend on how the price reacts to its weekly support, which is the main level to keep an eye on. Thereby, be prepared to actboth in the event of a bullish and bearish scenario, as it is essential to be prepared for the various eventualities of the market.
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