Algorandlayer 1 blockchain works in Proof of effort with significant scalability. This network works especially on the ecological aspect with the carbon-free goal and has a native symbol, ALGO. In a relatively complicated context in recent months, what about the price? This is an opportunity in this new Crypto Nugget, your weekly Wednesday analysis, to dissect its latest developments to try to draw the most plausible scenarios.
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A downward trend on a weekly scale
After an upward movement that has brought ALGO close to $ 3 in recent months, the decline that is following right now is not the least. In fact, it is currently at its lowest level since July 2021. It is important to note that a key support is located at $ 0.67. On several occasions, the asset managed to hold on to not diving. But then, this time, is it different? Or do we want to deal with yet another recovery?
As this is a large level, you will undoubtedly understand that in the event of its loss, it will be an important signal: that of a continuation of the downward trend with a continued presence of sellers in the markets. . In this case, the valleys and peaks will always be descending and new levels will be sought on the downside. Of course, nothing has been decided, as it will be necessary to await the closure of this light weekly.
On the other hand, I invite you to see the pivot zone. It acts as resistance as it converges with the previous peak. Therefore, in order to hope for a change in the structure on a weekly scale, it will probably be necessary to achieve a close above $ 0.98. Or, in the ideal scenario, a clear recovery from $ 1.02 would be very interesting to witness this purchasing power, which, I remind you, is definitely not present on ALGO at the moment.
ALGO still bearish on a daily basis?
On a daily scale, we can see a continuation of the weekly trend with the very first closing below the previously identified level. So would this mean the inauguration of the above-mentioned bearish scenario? To tell you the truth, we are not quite there, as a move of reintegration of the support is possible. However, this hypothesis increasingly deviates in favor of a continuation of the downward movement. So what should we consider in the coming weeks?
If we see a continuation of the decline in the cryptocurrency market, ALGO is likely to tend to follow suit with a break from its key level since last summer. In this case, here are the areas previous supports or resistances to which the price could respond:
So here are the scenarios to see in the context of a continuation of the decline. But what about a re-entry into support and a weekly ALGO closure above this level? In this case, we can imagine a return to $ 0.77, the level corresponding to the most recent peak. An eruption of this level with a whole new high would change the current pattern in the event that there is also a rising bottom. So what to consider next time? So far, the targets should be moderate with a return to $ 0.87 and then a likely continuation of the increase until the previous weekly high of $ 0.98.
Here we are at the end of this analysis for the ALGO asset! As you can see, the trend is clearly bearish on a weekly and daily scale. The end of the week will therefore be important for this asset as we will potentially have a directional grip. This will actually depend on the price reaction compared to its weekly support which is the main level to see. Thereby, get ready to actwhether it is in the case of a bullish or bearish scenario, as it is imperative to be prepared for the various eventualities in the market.
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