news 
Algorand Price Prediction – How Far Is Recovery For The Altcoin?
As the cryptocurrency market continues to fluctuate wildly, many traders are left wondering whether a particular asset will be able to recover from its current downtrend. In the case of Algorand (ALGO), the pullback has hit 34% after dropping from $0.61 to $0.40. The decline is partly attributed to the slight strengthening of Bitcoin’s dominance, which paused most of the altcoin market’s momentum.
Despite a brief stabilization above $0.40 during an early December liquidation cascade that had a massive impact on the altcoin sector, it seems unlikely that this level will reverse the ongoing downtrend. The area doubled as a key demand zone set in late November and has been crucial in preventing further losses for ALGO investors.
However, recent price action shows a low RSI reading, indicating below-average demand, which could lead to another price rejection at the channel’s upper boundary ($0.43). If this happens, the next potential reprieve could be found at $0.33 – the March high.
On the 4-hour chart, the SuperTrend indicator flashed a sell signal on December 9th, indicating that shorting ALGO made more sense than going long as its downtrend continued to extend. The flat demand from the spot market and reinforced by low CVD spot supported the short sellers’ edge in the market.
In conclusion, it appears likely that ALGO will continue its downward trend unless strong demand, flows, and a decisive move above $0.43 are seen.
Source: ambcrypto.com
