Breakdown alert!
ALGO/USD just fell through its ascending trend line and might carry on with a reversal after it completes this quick pullback.
Check out Algorand’s hourly chart:
ALGO/USD: 1-hour
FutureFi blockchain Algorand aims to create a sustainable network for all things decentralized – NFTs, stablecoins, DeFi… you name it!
While it all sounds promising, ALGO/USD price has had trouble extending its rally past the .9500-1.000 barrier, consolidating for a few days then eventually breaking below its rising trend line.
Could a reversal from the uptrend be in the cards?
It might all boil down to how ALGO/USD reacts to the area of interest spanned by the Fibonacci retracement levels.
The 61.8% Fib is close to the broken trend line while the 38.2% to 50% levels coincide with a former support zone that might hold as a ceiling. Stochastic is still on its way up, so the correction could keep going until it reaches the overbought region.
I’m seeing a fresh moving average crossover that suggests bears are taking control of price action from here, possibly taking ALGO/USD down to the swing low at .8500 or much lower.
The 100 SMA and 200 SMA might also hold as dynamic resistance on a larger pullback, but a break above these inflection points could signal that Algorand fans are refusing to let up!
