Algorand price has seen a considerable drop in the last 24 hours, but this bearish outlook may be coming to an end.
This is the analyst’s opinion Akash Girimath. Analyst pointed out that Algorand price is down 10% from $1.50 and has marked the $1.34 support level three times in the last five days, creating a triple bottom setup.
“This technical formation is a bullish reversal pattern and predicts a change from a downtrend to an uptrend,” he said.
As the analyst pointed out, traders can expect to start a small 11% run to the weekly resistance barrier at $1.53.
“If buyers can push the Algorand price to overcome this hurdle, the next stop would be the lower bound of the four-hour supply zone, extending from $1.70 to $1.80,” he said.
Still according to him, in total, this rise would indicate a 25% gain for ALGO and is where a local top would likely form.
Furthermore, he says that if buy orders continue to accumulate, there is a small chance that the Algorand price will revisit the psychological $2 level. This development would reveal a 46% overall gain for the crypto asset.
“On the other hand, if Algorand price does not hold around the $1.34 support level, where the triple bottom setup is formed, there is a good chance that SOMETHING will return to the weekly support level at $. 1.16”, he says.
Finally, he said that if the price produces a 4-hour candlestick closing below $1.16, it will create a lower low, invalidating the bullish thesis for ALGO.