Algorand (ALGO) price have experienced a devastating decline. If market conditions persist, investors will continue to yield negative returns. Key levels have been identified to gauge ALGO’s next potential move.
Algorand price is underwater
Algorand price has declined by 47% since the start of November. During each declining rally, the bulls have shown sparse retaliation strength as the pullback lasted only about a day. On November 22nd, the ALGO price suffered another bearish attack, prompting a new monthly low of $0.225. As the price consolidates post-plummet, the technicals suggest the downtrend is still ongoing.
Algorand’s price currently auctions at $0.246 as the bulls have produced a 9% relief rally following the newfound monthly low. The Volume Profile Indicator has produced a ramping pattern amidst the decline, which many traders should consider going into the weekend. If the technicals are correct, Bears in the market are likely aiming for the monthly low and liquidity levels near $0.20. The second target is liquidity zoned, which has remained outside ALGO’s auctioning radar since 2020.
Invalidation of the bearish idea could occur if the bulls manage to hurdle the 8-day exponential moving average at $0.27. If the bulls conquer the invalidation point, an additional hike targeting the 21-day simple moving average at $0.31 will stand a fair chance of occurring. Such a move would result in a 38% increase from the current Algorand price.