ALGO registers high selling pressure: Should you hold ALGO?

At the time of writing this post, Algorand was trading around $0.18, forming a downtrend even for the short term after breaking support around $0.3. In the first week of October, ALGO reached a high of $0.45.

After the FTX liquidity crisis, Algorand changed its momentum and dropped its value last month. The recent daily candlesticks are breaking the lower Bollinger Bands, suggesting extreme bearishness, at least for the next few days. Read our ALGO coin price prediction to know when this downtrend will end!

ALGO PRICE ANALYSIS

Other technical indicators such as MACD and RSI are also bearish; it can be the result of the US FED rate hike, affecting the crypto market.

During the short-term downtrend, ALGO is receiving more than average volume, suggesting a selling pressure that will continue for the next few weeks. Let’s analyze the weekly chart to get a broader view and understand the long-term perspective.

ALGO PRICE CHART

On the weekly chart, there was a bearish engulfing candle in the first week of November that suggested the beginning of the ongoing selling pressure and long-term downtrend. After that, it formed six bearish candles, and even this week, Algorand is forming a red candle.

We do not think it is an ideal time to invest for the long term because you will get ALGO at a much lower price than the current level. So, you may wait for the right opportunity until Algorand consolidates after taking support on the weekly chart.

Based on the price analysis, ALGO’s price may take support around $0.14, which can be an ideal time to accumulate more coins to average the price for the long term, but it will depend on the chart pattern in the next few months.

Considering the technical indicators, candlesticks are forming in the lower Bollinger Bands with negative RSI and MACD that reflect bearish momentum. You can add Algorand to your watch list to invest at the right time because the present price level is not ideal for short- or long-term investments.

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Indeed, Algorand has a lot of potential to contribute to real-life use cases in the next few years. The marketing and development teams are strongly working on these aspects.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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