Looking at Algorand/USDT 4H on Binance, it seems like there is a long road ahead for ALGO bulls.
We see two recent rejects at the .5 FIB / $.24. The retracement found support on the 200MA but the subsequent bounce was unable to fully recapture the .382 FIB at $.225. I'd expect some chop between the 200MA & .382 then a drop down towards $.21.
With the two rejections in place at $.24 and little volume supporting the 200MA bounce, I'm generally bearish in the short & long term on Algo. The volume spike that drove it from $.19 to $.24 seems anomalous and without any real momentum.
Should bulls get the fuel they need from somewhere in the ecosystem, its a tough road towards the long time resistance at $.26 (white line). I'd expect multiple attempts & failures at recapturing that level, especially with the .618 so close to it. With so many other charts & cryptos showing bullish indicators, Algo is a tough technical sell in current form.
We see two recent rejects at the .5 FIB / $.24. The retracement found support on the 200MA but the subsequent bounce was unable to fully recapture the .382 FIB at $.225. I'd expect some chop between the 200MA & .382 then a drop down towards $.21.
With the two rejections in place at $.24 and little volume supporting the 200MA bounce, I'm generally bearish in the short & long term on Algo. The volume spike that drove it from $.19 to $.24 seems anomalous and without any real momentum.
Should bulls get the fuel they need from somewhere in the ecosystem, its a tough road towards the long time resistance at $.26 (white line). I'd expect multiple attempts & failures at recapturing that level, especially with the .618 so close to it. With so many other charts & cryptos showing bullish indicators, Algo is a tough technical sell in current form.
Comment:
A few days later we're barreling towards the .236 fib line. With volume dropping even more, situation is looking bleak
Comment:
two bounces off the .236, next stop is $.197 if it fails to hold
Comment:
Really nice consolidation between the .382FIB (orange) & .236FIB (red). While not shown on this chart, the bbands are a hair above and below each colored fib line, running near parallel to each other.
Barring catastrophe, I think the red line will hold for the near term while ALGO consolidates around $.22.
Barring catastrophe, I think the red line will hold for the near term while ALGO consolidates around $.22.
Comment:
Well, catastrophe came via a mention as an illegal security within a Bittrex filing. This caused the .236 to fail quite dramatically. The cascading red candles with a tiny green doji look very bad, but there's a chance the bounce at $.196 holds and we come back up into the old trading channel.
Lots of risk trading ALGO rn, I'd stay on the sidelines personally
Lots of risk trading ALGO rn, I'd stay on the sidelines personally