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The Algorand (ALGO) price failed to break out from the $0.26 resistance area and could begin a short-term retracement.
The Algorand price has fallen since reaching an all-time high of $2.99 in Nov. 2021. The decrease led to a minimum price of $0.16 in Dec. 2022. Measuring from the all-time high, this was a drop of 94.68%. It seemingly caused a breakdown from the $0.18 horizontal support area, which had been in place since the bull run began in March 2020.
However, the breakdown was not legitimate (red circle) since the price reclaimed the $0.18 area shortly afterward. The area is now expected to provide support.
Currently, the ALGO coin price is attempting to break out from the $0.25 resistance area. Doing so could lead to an upward movement toward the next resistance at $0.43.
On the other hand, a rejection would likely lead to a re-test of the $0.18 level.
The weekly RSI is bullish since it has moved upward after generating bullish divergence (green line). As a result, a breakout above $0.18 is slightly more likely.
Algorand Short-Term Price Prediction: Retracement Before Rally
The technical analysis from the daily time frame gives a bearish Algorand short-term price prediction. It suggests that an initial retracement will occur before the upward movement continues.
There are two reasons for this: Firstly, the ALGO price was rejected by the short-term $0.26 resistance area (red icon). Secondly, the daily RSI generated bearish divergence.
As a result, a short-term decrease is expected. If one occurs, the closest support area would be at $0.21, created by the 0.5 Fib retracement support level and a horizontal support area.
Conversely, a daily close above $0.26 would invalidate this bearish Algorand short-term price prediction. In this case, an upward movement toward $0.32 would be the most likely scenario.
To conclude, the Algorand price forecast suggests that the future price will fall to $0.21 before resuming its upward movement. A daily close above $0.26 would invalidate this and possibly take the ALGO price to $0.32.