Being one of the top coins on the losers chart, the ALGO coin price takes a critical hit this week. With a bullish failure to sustain the rise in demand, the Algorand market value plunges back to its pre-rally levels.
Despite the intense supply inflow, the possibility of a bounce back reflects the interest at lower levels. Due to such dynamics, the ALGO price prediction remains optimistic for the altcoin’s journey in the coming months.
The ALGO price trend reveals a resistance trendline in the daily chart when facing an overhead supply inflow at regular intervals. During a rejection from the trendline, the trend formed a low at $0.088 before leading to a promising reversal.
Upon crossing the dynamic resistance of the 50-day EMA, the probability of a trendline breakout was bullish. However, despite the Uptober season, the prices failed to overcome the intense selling pressure, leading to another distribution phase.
Currently, retesting the bottom support of $0.088 after losing the critical $0.10 mark, the lower price rejection reflects a bounce-back possibility. As of now, the ALGO price trades at $0.090 and forms a Doji candle.
With the Doji candle in action, the possibility of a morning star appeals to sideline traders waiting to ride the next accumulation phase.
Technical indicators:
RSI indicator: The RSI line displays a minor bullish divergence in the dips to $0.088, promoting the comeback thesis for Algorand.
Exponential moving averages: The downtrend continues as the trend fails to sustain above the 50-day EMA.
Will ALGO Price Jump Higher From $0.10?
The ALGO prices must sustain above $0.088 to reclaim the trend momentum and avoid a new lower low formation. Doin so will increase the likelihood of a bullish comeback in the long run and tease the trendline breakout.
The ongoing Doji formation phase provides a lucrative morning star possibility to sideline buyers. In addition, the upcoming market-wide recovery expected this month will likely drive a new altcoin season. In a ripple effect, the chances of Algorand rising above $0.10 to cross $0.15 improves significantly.
If the ALGO price fails to reclaim momentum, the downtrend could reach a new low of $0.081.
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