- ALGO price printed a bearish chart setup, forecasting a potential 38% downward move.
- Bears can push the altcoin towards the lows of $0.50 after violating a crucial defense line.
- AGO has to revisit $0.94 to escape the bearish narrative.
Algorand (ALGO) launched a massive downward move after a bearish chart formation emerged. The alternative coin plunged beneath a crucial defense line of $0.81, highlighting the pessimistic goal by bears.
ALGO Bears Eye $0.50 Next
Algorand saw its price slicing beneath the descending triangle pattern’s lower boundary on its 12hr chart, reflecting a potential 38% drop that might take ALGO towards lower levels of $0.50. The prevailing chart formation displays this bearish move.
The altcoin had its first defense line at the 23 June low of $0.71, then the 21 June low of $0.67. Intensified selling pressure can push the altcoin lower to 127.2% FIB extension level around the $062 mark.
Meanwhile, increased bearish momentum might drive ALGO towards the pessimistic aim of $0.50, revealing a 38% downside move. That will see the digital coin exploring the governing technical pattern’s lower boundary.
Nevertheless, bulls coming to rescue might see ALGO price targeting the descending triangle’s downward trend-line near $0.81 before the token tries to hit 21 12hr Simple Moving Average near $0.89, the level matching 78.6% FIB retracement area.
An additional uptick in buy orders might witness ALGO price touching the 50 12hr Simple Moving Average at $0.94, the area intersecting with the prevailing chart pattern’s upper boundary.
The altcoin will invalidate the bearish narrative with a decisive move past the governing technical pattern’s upper trend-line. That can see Algorand’s price on extended upward movements, eyeing the 50% retracement zone at $1.11, the area traversing the 100 12hr Simple Moving Average.
For now, Algorand appears on a bear market, contemplating a massive 38% drop. The pessimistic narrative emerges as the crypto printed a bearish chart setup. With that, the altcoin might dip toward the lows of $0.50. Furthermore, the dominant bearish actions within the global crypto spectrum support Algorand’s plummets. Only a move past $0.94 will cancel ALGO’s bearish thesis.