Algo Bulls Need Fuel

31 Mar 2023

Looking at Algorand/USDT 4H on Binance, it seems like there is a long road ahead for ALGO bulls.

We see two recent rejects at the .5 FIB / $.24. The retracement found support on the 200MA but the subsequent bounce was unable to fully recapture the .382 FIB at $.225. I'd expect some chop between the 200MA & .382 then a drop down towards $.21.

With the two rejections in place at $.24 and little volume supporting the 200MA bounce, I'm generally bearish in the short & long term on Algo. The volume spike that drove it from $.19 to $.24 seems anomalous and without any real momentum.

Should bulls get the fuel they need from somewhere in the ecosystem, its a tough road towards the long time resistance at $.26 (white line). I'd expect multiple attempts & failures at recapturing that level, especially with the .618 so close to it. With so many other charts & cryptos showing bullish indicators, Algo is a tough technical sell in current form.

2 Nis 2023

Not

A few days later we're barreling towards the .236 fib line. With volume dropping even more, situation is looking bleak

4 Nis 2023

Not

two bounces off the .236, next stop is $.197 if it fails to hold

13 Nis 2023

Not

Really nice consolidation between the .382FIB (orange) & .236FIB (red). While not shown on this chart, the bbands are a hair above and below each colored fib line, running near parallel to each other.
Barring catastrophe, I think the red line will hold for the near term while ALGO consolidates around $.22.

20 Nis 2023

Not

Well, catastrophe came via a mention as an illegal security within a Bittrex filing. This caused the .236 to fail quite dramatically. The cascading red candles with a tiny green doji look very bad, but there's a chance the bounce at $.196 holds and we come back up into the old trading channel.
Lots of risk trading ALGO rn, I'd stay on the sidelines personally