Algorand: Here’s how this divergence could play out for ALGO traders

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

As the buyers built pressure at the $0.41-resistance, the bears quickly reacted by inflicting a steep plummet toward Algorand’s [ALGO] multi-monthly lows. The market-wide drawdowns accelerated the alt’s southbound journey to the $0.29 support.

While the recent recovery slammed into the 61.8% Fibonacci resistance, the resultant rebound can slow down ALGO’s near-term recovery prospects. At press time, ALGO traded at $0.31788, up by 13.04% in the last 24 hours.

ALGO 4-hour Chart

Source: TradingView, ALGO/USD

After the buyers lost their edge at the $0.41-resistance, ALGO saw a string of red candles after a bearish engulfing candlestick. The alt lost over a third of its value in just six days (9-15 June) and poked its 16-month low on 15 June.

The recent bullish engulfing candlestick negated the selling pressure by provoking double-digit 24-hour gains. But the 61.8% Fibonacci resistance coincided with the 55 EMA and created a stiff barrier for the buyers.

ALGO also registered an over 65% uptick in trading volumes alongside the…


Leave a Reply

Your email address will not be published.