Algorand May Check This Supply Area Before Another Departure

The cryptocurrency market and the stock market have shown weakness in recent days. Bitcoin was unable to find strong buyers in the $40k region and after a few days of skirmishes with the bears appeared on top. Algorand slipped below the previously strong support and pushed them back to the resistance zone. This looks set to happen again at the $0.95 area for Algorand, where short positions can be opened.

Algorand can recheck this resupply area before another leg goes down 5

Source: ALGO/USDT on TradingView

Two weeks ago, the price hovered above $1.36, which has some confluence with long-term support at $1.32. A week before press time, buyers looked exhausted. Since then, trading volume has been steadily increasing while the price has been pushed below $1.32. It has tested this double resistance against selling pressure for the past two days.

The yellow Fibonacci retracement levels are based on a longer term move from Algorand. This move is ALGO’s rally from $0.67 to $2.49 in June-September 2021. At the time of writing, the price has largely retraced this move. The $0.95 level has been a significant support in the past.

This level was tested as resistance and turned support in August, and at the time of writing, the price has dropped right through this area. Since it has been of importance in the past, it is a good area to open short positions.

Theoretical basis

Algorand can recheck this resupply area before another leg goes down 7

Source: ALGO/USDT on TradingView

At the time of writing, the price is $0.89 and both the RSI and the Stochastic RSI are in the oversold zone. The Awesome Oscillator is also heavily bearish.

Oversold momentum indicators suggest that there is a chance that ALGO could see some upside before the next period of declines. However, the trend is likely to remain bearish.


There is no guarantee that the price can even rise to the $0.95 level. Selling pressure is likely to increase by the end of the week, although an upward pump in search of more favorable short positions could also begin at the end of the week.

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