After retesting the late 2022 breakdown level as resistance in Q1, Algo saw rejection and continued to roll over in search of a solid level to establish support. so far, it has lost over 10% in a week.
One of the best crypto gems with a good use case, ALGO, has been on a steady fall since the middle of the month.
Although the sell actions started after failing to sustain buying pressure above the crucial $0.30 resistance level in the first quarter of the year. Unfortunately, this rejection led to a three-week fall, and the price bottomed at $0.18 as March’s low.
Algo took off from that low but found it difficult to push above the $0.24 level for a month. Due to several setbacks encountered around this level, it initiated a short and lost over 20% of its value into a key demand zone yesterday.
It bounced off that key zone and retraced to where it trades around the mentioned March low level.
However, if the bulls return any moment from now, the big obstacle for them in the future would be the mentioned resistance (formerly support) that flipped last year November. The bulls must react to the recent low well to produce a solid level for entry.
Otherwise, a crash below the current bottom (established last December) will signal a heavy price collapse until Algo finds a new bottom.
ALGO’s Key Level To Watch
The price has reached an important demand zone of $0.172 and $0.16 are also considered the support level. We can expect a decent recovery above it. In case of a crackdown, the potential level to consider as support is $0.14.
A recovery above that demand zone could bring a retest at $0.21 and perhaps to the $0.23 and $0.24 small supply zone. If the price conquers this zone, the potential resistance levels to watch are $0.257, $0.273 and $0.29 before advancing higher.
Key Resistance Levels: $0.21, $0.24, $0.257
Key Support Levels: $0.172, $0.16, $0.14
- Spot Price: $0.18
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: benedak/123RF // Image Effects by Colorcinch
