- ALGO price appears to be coiling within a triangle formation .
- Algorand price bullish momentum is declining.
- Invalidation of the bearish scenario is a close above $0.52.
Algorand price looks constrained
Algorand price is failing to establish bullish momentum following the severe decline and capitulation event into the lows at $0.36. The ALGO price could begin heading to complete a b wave triangle before further uptrend occurs. Analyzing the current ALGO price action, the bears seem to have re-conquered control as the Algorand price is climbing in a choppy upwards manner. This could be early evidence of bullish exhaustion.
Algorand price is also declining on the volume profile which adds further bearish confluence. If the technicals are correct, a C wave could be produced into the $0.43 zone in the coming days. Traders should consider waiting for the triangle’s structure to finalize before jumping in.
ALGO/USDT 4-Hour Chart
Still, having an invalidation level is vital for traders. Algorand price should not breach the $0.52 level. If this bullish event happens, consider the downtrend scenario void. A $0.57 ALGO price could be the next bullish target resulting in a 15% increase from the current ALGO price.