After massive gains across the board at the weekend, the altcoin rally is taken a breather this morning. And as a result, ALGO has slid below $1.00 and lost an important support level. But is this just a healthy pause before the next leg up, or is the rally starting to falter?
Algorand has been somewhat of an underperformer over the last three weeks. Despite gaining 50% from the July low, ALGO has yet to break out on the upside convincingly. And as other cryptos, such as Cardano, are screaming higher and aiming towards 2021 highs, the Algorand price will need to more than double to reach February’s $1.9032 record.
Because of the rapid rise in many of its rivals, the ALGO coin has slipped down the rankings recently. Currently, Algorand is the 44th-largest cryptocurrency, with a market cap of just over $3 Billion, slightly edging out 45th placed IOTA. But the question is, will the Algorand price catch up to its peers or will the recent underperformance continue?
ALGO Technical Outlook
The daily chart shows the rally has fallen short of clearing the 200-day moving average at $1.0811. Furthermore, it is also having trouble at the 100-day at $0.9414. Additionally, the Algorand price has fallen back into the descending triangle formation, capping the price since May’s collapse.
This may be of some concern to the bulls, especially considering the performance of the broader market. This suggests that ALGO may suffer more than most if the market as a whole turns lower. However, in saying that, for the moment, the rally is intact and will the price appears in no immediate danger. And on that basis, the outlook remains positive, as long as it holds above the August low of $0.7680. Although, if the price loses this support level, the outlook turns sharply bearish and will target June’s low point at $0.6520.
Algorand Price Chart (Daily)
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