ALGO Technical Analysis: Falling Channel Keeps Downtrend Going 

Key technical points:

Past Performance of ALGO

ALGO prices remain in a downtrend for the most part of 2022 except for a few minor retracements to the 50-day EMA. The recent sell-off brings the market value under the $0.50 mark and starts a falling channel pattern accounting for a 40% fall. However, the recent surge in selling pressure during the bear cycle within the channel warns of the support trendline fallout.

Source- Tradingview

ALGO Technical Analysis 

Currently, the ALGO daily candles form a consecutive Doji candle close to the support trendline reflecting a bullish fightback. Hence, traders can expect the bullish resurgence to start an upside extension, but the price action confirmation will be critical. The daily-RSI slope shows a bearish trend flattening near the oversold boundary as the Doji candle formations halt the downtrend. However, a slight increase in selling pressure will push RSI over the oversold boundary and increase the chances of trendline fallout.

The MACD indicator displays the fast and slow lines merging below the zero line resulting in a bearish crossover. However, the lack of bearish spread projects a possible sabotage moment for buyers to overtake trend control. So the technical indicators display a stronger bearish side and side with the price action analysis of increased trendline breakout chances. However, the price action traders might prefer to wait until the price falls below $0.27. In a nutshell, the ALGO technical analysis forecasts a bearish continuation below the support trendline.

Upcoming Trend

Suppose the increase in selling pressure converts the Doji candle into a bearish engulfing crossing below the $0.27 mark; ALGO prices will plunge drastically. Traders can expect the fallout rally to reach the $0.20 mark, accounting for a downfall of 25%.

Resistance Levels: $0.40 and $0.50

Support Levels: $0.27 and $0.20