After days of a bullish trend, yesterday’s trading session saw the Algorand price drop by 4 percent and set up for a price reversal. In the early hours of today’s trading session, Algorand’s price is poised to continue with the bullish trend and is already down by almost a percentage point.
Why is the Algorand Price Dropping?
To understand why the Algorand price is currently dropping, we have to look at its performance in the past few weeks, where it has risen by 37 percent year-to-date. During this period, when its prices rallied to the upside, the entire cryptocurrency industry was going through a similar trend. Therefore, one of the main reasons why Algorand was bullish was due to its significant correlation with the industry.
In the past few days, the industry-wide bullish trend has slowed down. This has also meant that the market forces that had resulted in Algorand’s price surging due to its correlation to the industry have also played a part in its latest decline.
The correlation between Algorand and the crypto industry can also help us predict where we can expect to see Algorand trading in the next few trading sessions. Based on what we have seen in the markets, it is clear that yesterday’s and today’s bearish trend has been a result of the industry-wide crypto market experiencing also experiencing a bearish trend.
Algorand Price Forecast
Therefore, based on the information pointed out above, I expect the current bearish trend to end in the coming session and the bullish trend to resume. This is based on the current bullish trend of the industry. As we have seen above, Algorand has primarily traded in steps with the industry-wide crypto trend. Therefore, this recovery will also see Algorand’s market price surge.
On the technical side, indicators such as the Williams Alligator and the RSI also continue to signal a continuation of the bullish trend. Recent price action that has resulted in Algorand’s price rising by 37 percent YTD also points to a continuation of the bullish trend.
Therefore, my price target for the crypto is for it to trade above the $0.30 price level in the coming sessions. For the long-term, there is a high likelihood we might see it trading above the $0.50 price level in the next few months.
Algorand Daily chart
