Algorand price fell below the 50 day simple moving average (SMA) for the first time since December 23, 2020 and qucly testes the major psychological level at $1.00.
Algorand price defined an ascending channel for 25 days, just above the 50-day SMA. On Monday, ALGO closed decisively below the lower trendline and the medium-term moving average which cause the selling last week.
The breakdown looks to be short-lived as we are approaching the channel once again. A daily close inside the channel will be the first signal that last week’s weakness was just a shake-out of impatient traders. The channel’s mid-line at $1.38 is a critical resistance going back to March 5, followed by the channel’s upper trendline at $1.54. If we fail to make it back to these levels a retest of $1.00 will be almost certain.