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On October 13, Algorand's price produced a bullish candlestick, which was insufficient to start a positive turnaround. It's still possible that the pattern will break since hitting an annual low of $0.275 on June 18. On September 23, ALGO attempted a breakthrough, but the channel's resistance line denied it. The rejection and subsequent price decline were essential since they verified the channel's resistance line and the divergence over the $0.373 resistance zone.
The current situation
ALGO (1) is trading in the lower part of the price channel after rebounding on October 13. Consequently, a breakdown is the most likely outcome. Additionally, the daily RSI (2), which has dropped under 50, supports this claim.
The price could drop to $0.24
According to the weekly chart, ALGO's primary support level is $0.240. Since November 2020, this important horizontal price support level has not been attained. It is crucial to remember that the previous $0.275 annual low was not reached at a Fib or horizontal support level. Therefore, it is improbable that a positive price reversal could be supported from that level.
Consequently, the most likely scenario for Algorand appears to be a negative price movement into the $0.24 range followed by a turnaround. This is also consistent with the daily bearish findings. The weekly RSI might trigger the third touch of positive divergence if the ALGO price drops to $0.24. This would validate the deviation. Additionally, it may support the long-term bullish turn before the price collapse and relief.
What's to be expected
In summary, The weekly and daily charts indicate that the price will decline. They show that the ALGO has not yet hit its bottom. A 25% price reduction is anticipated once it departs from the trend it is now following. The short-term chart suggests that there may be some respite. It demonstrates how ALGO has exited a declining resistance line. However, the bearish movement is expected to resume if the Algorand price hits the $0.348-$0.363 barrier.