What latest retracement on ALGO’s chart reveals about its future price trend

ambcrypto.com:

As the bears refrained from giving up their advantage, Algorand (ALGO) was on the back foot for the last few months. Now, it struggled to topple the long-term 23.6% Fibonacci resistance.

While the buyers are trying to keep up their pressure, the chances of defending the $0.73-support were bright. If this pressure sustains, a retest of the mean (20 SMA) of its Bollinger bands (BB) seemed likely. Following this, the overall market structure would play a vital role to anticipate a patterned breakout possibility. At press time, ALGO traded at $0.7349, down by 3.82% in the last 24 hours.

ALGO 4-hour Chart

Source: TradingView, ALGO/USD

After the bulls struggled to hold their grounds at the $1.8-resistance, ALGO steeply downturned and gravitated towards the $0.7-$0.73 support range. This range has offered a strong floor for over a year now. The alt lost nearly 61.5% of its value (from 5 January) and pulled back towards its seven-month low on 24 February.

Since then, the sturdy 23.6% Fibonacci level shunned all recovery attempts by the ALGO buyers. As a result, the latest retracement saw a sharp pullback between the down-channel (yellow). During this phase, the mean of the BB coincided with the upper trendline of this channel and offered strong resistance. Historically, the bulls have shown a keen interest in defending the current support range. Also, the price has entered into a ‘cheaper’ phase near the lower band of its BB.

From here on, a retest of the $0.76-$0.77 mark before potentially entering into a consolidation phase seemed probable for the alt. Further, most reversals from the $0.7 level found a recovery towards the upper band of the BB.

Rationale

Source: TradingView, ALGO/USD

The sellers tested the 34-support thrice in just