Connect with us
Active Currencies 10009
Market Cap $1,172,755,761,395.32
Bitcoin Share 44.54%
24h Market Cap Change $3.23

Algorand: Are sellers subdued as ALGO retests support level $0.1805?

2min Read

Algorand [ALGO] drops to a lucrative level for swing players. But BTC faces more uncertainty and will impact ALGO investors.

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • ALGO was bearish on the six-hour chart
  • Open interest rate flattened; funding rates were positive

Algorand [ALGO] dropped to an attractive level for trend and swing players. The asset retested its range’s lower boundary of $0.1805, and bulls were on-site at press time, as demonstrated by the long candlestick wicks.

However, the selling wave still looms, and coupled with next week’s FOMC announcement; any hawkish stance could undermine bulls. 

Read Algorand’s [ALGO] Price Prediction 2023-24

Which way for ALGO – a rebound or a bearish breakout?

Source: ALGO/USDT on TradingView

Since mid-March, ALGO oscillated between $0.1805 – $0.2347, chalking a parallel channel pattern. At press time, price action retested the lower boundary of $0.1805. The level also lined up with March swing lows. 

The downsloping 50-EMA and 200-MA indicated that sellers had the upper hand at the time of writing. In addition, the Relative Strength Index (RSI) was in the oversold zone, reiterating the seller’s leverage.

Ergo, the $0.1805 support could crack, setting the ALGO/USDT pair into an extended downtrend which could ease at December swing lows of $0.1604. If that happens, shorting ALGO if it closes below $0.1805 could offer a good risk ratio.

However, the clearance of the $0.1900 hurdle could show buyers gaining traction and will invalidate the above thesis. The move could see the pair rally towards the channel’s mid-range of $0.2076 and 50-EMA ($0.2003). A move past 200-MA could set the pair to zoom and retest the upper range boundary of $0.2347 before facing strong resistance. 

Open interest rate flattened; funding rates were positive

Source: Coinglass

How much is 1,10,100 ALGOs worth today?

ALGO’s funding rates in the past few days remained relatively positive – stable demand indicating a bullish sentiment in the derivatives market.

However, the open interest (OI) rates fluctuated in the same period. At press time, OI was flat, suggesting a likely pivot to the upside or downside. If OI rises as ALGO hits $0.20, it will signal a bullish sentiment and a possible recovery.

However, a dip in OI and the price will signal a likely bearish breakout; thus, investors can track this front alongside Bitcoin’s [BTC] price action.

Source: Coinglass


Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.