• 29 May, 2024
News

Algo Struggles to Break Descending Channel as Price Remains Below 0.14C

The Algorand (ALGO) cryptocurrency has been struggling to break the descending channel since September 2021. Despite some recent attempts, ALGO has yet to break through the resistance and remains below 0.14c. This is a bearish sign for the crypto, with analysts predicting that if it fails to break through this level, it could fall back to double bottom levels at 0.11c or even 0.06c in a worst-case scenario.

As Algorand (ALGO) continues to grapple with a descending channel, the crypto community shares insights on the potential outcomes. Crypto analyst Egrag, shared their thoughts in a recent tweet:

The descending channel has been in place since September 2021, when ALGO reached its all-time high of $3.28 per coin before dropping off significantly over the following months. Since then, ALGO has been unable to break through the resistance of the descending channel and remains below 0.14c despite several attempts at breaking out of it.

The analyst has predicted that if ALGO fails to break through this level, it could fall back down to double bottom levels at either 0.11c or 0.06c depending on market conditions and other factors such as investor sentiment and overall market performance. The possibility of a double bottom is relatively high but would require a general market downturn similar to pre-pandemic levels for it to occur. A wick down to 0.06c is also possible but less likely than the other two scenarios due to current market conditions and investor sentiment towards ALGO specifically.

Overall, ALGO’s inability to break through the descending channel is a bearish sign for investors who are hoping for a breakout from this trend soon for prices to increase significantly again as they did earlier in 2021 when they reached their all-time high of $3.28 per coin before dropping off significantly in value over the following months.

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