Algorand price prediction – Despite 15% dip, will ALGO remain bullish?

Algorand has a strongly bullish structure on the higher timeframes.
The DeFi protocol’s Total Value Locked has increased by more than 50% in November, likely driving gains.

As an analyst with over two decades of experience in the cryptospace, I must admit that Algorand [ALGO] has been quite the rollercoaster this month. The gains it made in November were reminiscent of those days when Bitcoin first reached $10k back in 2017.

Algorand (ALGO) experienced substantial price increases during November. Known as “Uptober”, October was particularly bullish for ALGO, with it hovering near the $0.117 support level. So far in November, ALGO has surged by an impressive 97%.

A discrepancy between the price rising and its momentum falling might lead to a short-term decrease. Yet, the substantial purchase activity over the past few days suggests that any reductions are expected to be minor and brief.

Long-term downtrend still in play?

Based on the downtrend from March to August, a set of Fibonacci retracement levels were plotted.

The analysis indicates that the $0.2397 and $0.2794 price points served as significant barriers for Algo bulls to surpass, representing 61.8% and 78.6% retracement levels respectively.

For the upcoming week, the outlook for Algorand’s price trend seems to be tilting towards a downward direction, or bearish. This prediction is based on the possibility that the market may have extended too far, causing the Relative Strength Index (RSI) to form a bearish divergence pattern.

Given that Bitcoin [BTC] currently remains above the $90k mark, there’s a positive outlook, or bullishness, within the crypto market. If Bitcoin were to dip below $89.5k, it might trigger increased short-term selling.

Testing the $0.16 mark again could present a good chance to buy, yet it’s uncertain if we will experience such a significant dip. Instead, keep an eye on the $0.184 and $0.209 as potential areas where the price might stabilize or bounce back.

Algorand price prediction — Bullish reversal ahead?

In simpler terms, there have been multiple large sell-offs near the $0.205 price point on Algorand’s market.

Realistic or not, here’s ALGO’s market cap in BTC’s terms

In the coming 2-3 days, it’s expected that this movement in the liquidity pool will prompt a favorable response, potentially causing Algo’s price to climb towards approximately $0.235.

When the price falls below $0.205, there are other potential magnet points at $0.178 and $0.167 that might trigger a bullish turnaround within the next few weeks.

2024-11-20 03:03

Long-term downtrend still in play?

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