Algorand (ALGO) has seen some bearish pressure this week. The coin has, as a result, dropped below an important support zone. But ALGO could still bounce back really fast and deliver a decisive double-digit upswing. Here is what you need to know:
ALGO has fallen slightly below the crucial support of $0.687
The coin could however bounce back above that price in no time
Algorand will rally to $0.814 if indeed this happens.
Data Source: Tradingview
Algorand price prediction- Why upside potential remains
A fall below crucial support zones is never a good thing for any coin. The fact that ALGO has lost $0.687 could be a big blow. However, we don’t see it that way. In fact, the general consensus is that ALGO will likely bounce back very fast, regaining the support in the process.
Once this happens, we will see the price action consolidate above $0.687 before ALGO surges towards $0.814. This will deliver an upswing of around 20% for bulls. Besides, other momentum indicators, including RSI show the coin is bullish right now.
Despite this, ALGO has had so many false breakouts in April. For example, at the start of the month, the coin formed a significant bottom reversal pattern that promised to deliver massive gains. But ALGO failed to follow through and instead, the coin only rose modestly before tumbling back down. While a surge towards $0.814 could be seen as a bullish breakout, we don’t expect it to go on for long.
Is Algorand a good buy today
Well, based on the underlying fundamentals, Algorand (ALGO) is no doubt a great crypto asset to purchase. If you just want it for the long term, then you are free to buy it now.
From a short-term perspective, ALGO has some upswing potential. The coin could gain around 20% over the coming week. But due to increased volatility in the market, don’t hold your position for long.