⚠️ Algorand Ready to Fall: In-Depth Technical Analysis & Essential Trading Insights 📉:

⭐Introduction: Algorand (ALGO) is a decentralized blockchain network designed to support a wide array of applications with security, scalability, and efficiency as core features. Launched in June 2019, the Algorand mainnet has demonstrated robust capabilities, handling nearly 1 million transactions daily as of December 2020. Algorand’s initial coin offering (ICO) occurred in June 2019, setting its token price at $0.24. After experiencing significant declines in recent years, Algorand has now reached a critical support level on the daily timeframe. A breakdown below this level could potentially trigger substantial further declines. Stay tuned as we continue to analyze this situation closely.

📊Daily Time Frame:

In the daily timeframe, we are observing a primary downtrend for this coin. Since the end of the bull run in 2021, it has experienced a significant decline of around 90%. Despite recent market uptrends, it has not shown substantial recovery momentum and continues to exhibit strong downward momentum.

Additionally, there is a Descending Triangle pattern forming, with confirmation expected upon breaking below the $0.1569 line, signaling a potential entry point for short positions.

It’s worth noting that trading volume in this coin has been decreasing, but recent momentum suggests the potential for sharp movements in the near future. Furthermore, after breaking the support at $0.1516 and establishing below it, potential targets could be $0.1212 and $0.0870, representing approximately a 45% downward movement!

⚡Four-Hour Time Frame:

In the four-hour timeframe, we experienced two significant economic news events that caused volatile market movements (highlighted in the blue box). We discussed the long-term implications of these decisions by the U.S. government in our previous updates, and I encourage you to follow that thread for quick updates and momentary news.

In the four-hour timeframe, our key level is $0.1516, and a consolidation below this level could serve as a critical trigger for short positions. Additionally, pay attention to trading volume as further confirmation. Trading volume is crucial as it confirms the trend we are witnessing. For instance, during a downtrend, increasing volume indicates the trend’s health and persistence, while decreasing volume suggests weakness, potential fakeouts, or a reversal in the trend.

Moreover, based on your strategy, you can use RSI to gauge momentum. If the break below the $0.1516 line aligns with oversold conditions in RSI, it can confirm increased momentum and potentially sharper and faster movements, translating to higher profits in a shorter time frame.

🔻 Key Support Levels:
0.1569 , 0.1212, 0.0870

🔺 Key Resistance Levels:
0.1708, 0.1972, 0.2234

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Last Analysis
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