Today’s trading session has seen Algorand’s price losing value. This is after days of what looked like a trend reversal after the cryptocurrency gained more than 20 percent. Today’s drop in price comes amidst announcements that Algorand was planning a series of upgrades that would see it bolster its network’s privacy and speed. The announcement also indicated the platform was looking to allow permissioned co-chains with a trustless decentralized bridge between chains.
Algorand Price Prediction
Algorand price looked like it had broken out of the descending channel a few days ago after it hit and pushed past the upper trendline on March 17. However, the recent price action of Algorand indicates that the breakout may have been fake. There are also signs that the long-term bearish trend is poised to continue for the foreseeable future. Below are some of the points supporting a long-term downward move of the cryptocurrency.
For starters, the bearish move within a descending channel had seen the cryptocurrency drop by 38 percent of its value before recovering and hitting the channel’s upper trendline. The move had also lasted for weeks. However, this all changed when signs indicated that the trend may be reversing after the cryptocurrency broke out of the descending channel. Fast forward to today’s trading session, and the prices were only retracing.
Using the Fibonacci retracement tool, this is confirmed. The prices hit a support level of $0.67 before starting to rise. Since the start of the bullish move, the prices retraced to the 38 percent retracement level of the Fibonacci retracement tool. After hitting the 38 percent retracement level, the prices look poised to continue with a downward move. This means that we should expect the prices to at least hit the $0.67 support level in the coming days.
However, a trend reversal would be confirmed if the prices reverse again and end up above the 38 percent retracement level. Such price action would also invalidate my trade analysis and mean the cryptocurrency is on a bullish move.