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Bearish Momentum in ALGO Market Persists after a Strong Selloff

Published 08/03/2023, 15:26
Updated 08/03/2023, 15:45
Bearish Momentum in ALGO Market Persists after a Strong Selloff

  • As bulls lose steam, the ALGO token is dominating the bearish sentiment.
  • The Algorand price is at $0.2121, down 3.09% over the past 24 hours.
  • If bears remain in control and the ALGO may target the $0.2103 support level.

The Algorand price analysis reveals that a bearish trend has been dominating the market today. The bulls have failed to push the price back above this level since then, which indicates that bears are gaining momentum. Moreover, ALGO has broken below an ascending trendline and is currently trading below the $0.2202 resistance level.

Most of the cryptocurrencies today are also trading in the red, with the top coins like Bitcoin and Ethereum also losing some of their value. Therefore, it looks like a bearish sentiment is dominating the entire market, and investors should exercise caution when making any investments in cryptocurrencies.

Cryptocurrency price heat map, Source: Coin 360

Both the market cap and trading volume of ALGO have significantly dropped in the past few hours, indicating that investors are still not completely convinced about the potential of this cryptocurrency. Currently, the 24-hour trading volume is at $55 million, with a decrease of 12%, And the market cap is at $1.50 billion, with a decrease of 3.63%.

ALGO/USD daily price chart: CoinMarket Cap

The Algorand price analysis is currently trading at $0.2121, which is down 3.09% over the past 24 hours. If bears remain in control, then the ALGO may target the $0.2103 support level as its next destination, which may see further losses.

On the other hand, if the bulls manage to gain momentum and push the price above the $0.2202 resistance level once again, then ALGO may be able to make a comeback to recent levels and start moving higher. However, at this point in time, it looks unlikely that the bulls will be able to take control of the market as the bearish sentiment continues to dominate.

The technical indicators of the Algorand price analysis also suggest that bears are currently in control. The stochastic RSI reading of the ALGO is currently at 32.24, which points to a bearish trend in the market. Moreover, the RSI is heading toward the oversold region, with more losses expected in the coming hours.

ALGO/USD 1-day price chart: TradingView

The volatility is also quite low in the market, with the Bollinger Bands showing relatively narrow trading ranges. The upper Bollinger Band is currently at $0.2944, and the lower Bollinger Band is at $0.2074, indicating that volatility could remain low in the market for a while. The moving average indicator is also below the price action at $0.2306, further confirming a bearish trend in the market.

To sum up, the Algorand price analysis shows that ALGO/USD token pair faces rejection at $0.2202 after a strong selloff, and bears are currently dominating the market sentiment. The selling pressure is likely to remain strong in the coming hours, and a retest of the $0.2103 support level if bearish persists.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Bearish Momentum in ALGO Market Persists after a Strong Selloff appeared first on Coin Edition.

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