- ALGO price lost 10% within 24 hours, setting up a triple bottom near $1.34.
- A rebound from the barrier might catalyze a 25% upswing towards the 4hr supply region that extends between $1.70 and $1.80.
- Breaching the $1.16 weekly support will violate the bullish case.
Algorand (ALGO) has witnessed a substantial price fall within the last 24 hours. However, the altcoin indicates that the bearish picture may be ending. As the alternative token secures a reliable foothold at its current support, market participants may maximize the anticipated gains.
ALGO Price Ready for Trend Reversal
Algorand’s price lost 10% from $1.50, tagging the support level near $1.35 three times within the last five days. As a result, Algorand formed a triple bottom pattern. The technical setup is a reversal formation and predicts a trend switch to bullish from bearish.
Market players may expect Algorand to launch a minor 11% upswing towards the weekly resistance zone around $1.53. If buyers push ALGO price to overcome this obstacle, the flowing stop may be the 4hr supply zone’s lower limit, stretching between $1.70 and $1.80.
The resulting run-up would mean a 25% price increase in ALGO, and the token will likely print a local top. Meanwhile, magnifying bid orders will open the road for ALGO to revisit the psychological zone at $2. Such a move will mean a 46% total gain for Algorand.
Meanwhile, Algorand’s failure to keep the support around $1.34 – the level where triple bottom emerged – might see ALGO retracing towards a weekly support floor of $1.16. Bulls may band together and this level to kick-start an uptrend. Nevertheless, failure to do that might mean more drops for the coin. If ALGO price forms a 4hr candlestick close under $1.16, a lower low will emerge, annulling the above bullish narrative for ALGO.
For now, ALGO enthusiasts remain optimistic on the token, awaiting the impending 25% upswing. Meanwhile, the alternative coin should keep the weekly support of $1.16 to realize its anticipated upward move. Failure might mean downtrends before bulls gather the essential strength to explore higher price zones.