Algorand’s price is a playground for Market Makers; here’s how to avoid getting caught
- Algorand price is in a downward parallel trend channel
- The ALGO and price action suggests that a countertrend move may be happening soon.
- Invalidation of the bearish thesis is a close above $0.78
ALGO price is undergoing a very tricky scenario in terms of price direction. The best approach for traders is to wait for an ideal opportunity to present itself.
Algorand price shows mixed signals
Algorand’s price may continue to decline to the $0.63 level, but traders should not expect a clear path to the target. Now that ALGO price has invalidated the sideways triangle idea mentioned in last week’s thesis, market makers seem to have a bearish grip on ALGO price. However, the path to targets below $0.60 and $0.55 could be a bumpy road with cash grabs and counterfeits along the way.
Algorand’s price is currently trading at $0.66, the lowest price set for April so far. ALGO price action looks more corrective than impulsive as price printed a doji candle with significant volume at the lower end of the trendline. The doji also comes with a marked hidden bullish divergence on the relative strength index.
ALGO/USD 4 hour chart
There is no confirmation for a bullish rally soon, but directional trend changes may frequently occur within the current trend channel. A downtrend invalidation can only occur if the bulls can handle a breakout and close above the upper boundary of the trendline at $0.78.
A false breakout can happen, so being the first buyer is considered high risk. A pullback will eventually occur if the bulls can close above $0.78. The second breakout could be a confident entry with ALGO price targeting $0.87, which would lead to a 30% increase from the current ALGO price.