The 9.13% decline this Monday in the ALGO/USDT pair is triggering new bearish Algorand price predictions. The heavy downside seen in the pair during last week’s crypto market collapse caused a halving of the Algorand price from 0.78 to 0.39. This 50% loss in the value of the ALGO/USDT pair triggered mass panic among investors who had bought into the crypto after news of the project’s partnership with world football governing body FIFA was made public.
The decline seen in the Algorand token price this Monday comes as regulators prepare to force more oversight on the market after last week’s bloodbath, triggered by the collapse of LUNA and the de-pegging of the UST stablecoin from this asset.
US Treasury Secretary Janey Yellen and the Chairman of the Securities and Exchange Commission (SEC) Gary Gensler are calling for more crypto regulations. The Nigerian Securities and Exchange Commission (SEC) has also released its first-every crypto market regulatory guidelines. South Korean regulators are also angling for the expedited passage of new crypto laws.
The steep decline and recent modest recovery have led to the bearish flag’s formation on the daily chart. The intraday selloff is now challenging the lower border of this flag. If the bears force a closing penetration below this flag that fulfils the relevant price filter, we could see a resumption in the selloff and more bearish Algorand price predictions.
Algorand Price Prediction
The intraday decline could put the 0.3915 support in jeopardy if it violates the bearish flag and leads to its breakdown. A degrading of this support level opens the door towards the next support at 0.2799 (24 December 2020 low). The attainment of this support would complete the measured move from the breakdown of the bearish flag. Below this level, additional support targets are found at 0.2228 (4 November 2020 low) and at 0.1645 (13 April 2020 low).
A recovery in the pair only comes when the bulls force a break of the 0.5142 resistance (10 January 2021 and 13 May 2022 highs). This break opens the door for further advancement towards 0.5942 before 0.6760 (14 March and 7 May lows in role reversal) enters the picture as an additional northbound target.