Is Algo in a Price reversal?

Since July 20, Algorand has been in a strong bearish trend, which has seen it lose 16 per cent of its value. However, in today’s trading session, the Algorand price looks to be reversing and is already up by almost a percentage point. 

Algorand, like all other cryptocurrencies, has struggled in the markets for the past week, which has seen its price drop below July’s opening price. Today, it is trading about a percentage point below, and based on the current trend, there is a high likelihood the month will close aggressively bearish.

However, despite not moving by much, Algorand performance throughout the month has been very volatile. At one point during the month, the price of Algorand was down by 8 per cent. However, the prices would start a strong bullish move and recover later. At one point, the Algorand price had risen by as much as 20 per cent and was looking likely to wipe out losses made in June. However, since July 20, the prices have started to come down hard, which has resulted in the current price f $0.31.

Algorand Price Prediction

Looking at the chart below, we can see that today’s trading session is up by almost a percentage point. We can also see today’s price gains as an abnormality based on recent price action that has resulted in price drops. One question that crops in mind is whether today’s gain is a price reversal and whether we will see more of these gains in the coming sessions.

In my opinion, today’s Algorand price gain is a retracement rather than a price reversal. My analysis is based on the previous price actions of the past few weeks. Every time a trading session closed with a gain, it was followed by a strong bearish move.

Therefore, my Algorand price prediction expects the next few trading sessions to be aggressively bearish. There is a high likelihood that prices may fall as far as hitting the $0.277 support level. However, should the prices rise and hit this week’s price high of $0.34, then my analysis will be invalidated. It will also likely mean a move to the upside.

Algorand Daily Chart