- Algorand price dropped 10% over 24 hours and set up a triple bottom at $1.34.
- A bounce from this barrier is likely to trigger a 25% run-up to the four-hour supply zone, extending from $1.70 to $1.80.
- A breakdown of the weekly support level at $1.16 will invalidate the bullish thesis.
Algorand price has seen a considerable drop over the past 24 hours and shows that this bearish outlook might be coming to an end. As ALGO finds its footing at the current support level, investors can position themselves to maximize the gains that will follow.
Algorand price ready for a reversal
Algorand price dropped 10% from $1.50 and tagged the $1.34 support level thrice over the past five days, creating a triple bottom setup. This technical formation is a bullish reversal pattern and forecasts a trend shift from bearish to bullish.
Investors can expect ALGO to kick-start a minor 11% run-up to the weekly resistance barrier at $1.53. If buyers can push Algorand price to clear this hurdle, the next stop would be the lower limit of the four-hour supply zone, extending from $1.70 to $1.80.
In total, this climb would indicate a 25% gain for ALGO and is where a local top would likely form. Moreover, if bid orders continue to pile up, there is a slim chance Algorand price could revisit the $2 psychological level. This development would reveal a total gain of 46% for ALGO.
ALGO/USDT 4-hour chart
On the other hand, if Algorand price fails to hold around the $1.34 support level where the triple bottom setup is formed, there is a good chance ALGO will retrace to the weekly support level at $1.16.
Here, bulls can band together and restart the uptrend. However, a failure to do so could result in a further crash. If Algorand price produces a four-hour candlestick close below $1.16 it will create a lower low, invalidating the bullish thesis for ALGO.
