Algorand drops with persistent bearish momentum as price holds below key moving averages: weekly outlook

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Algorand slides 21.46% this week

Highlights

Algorand trades in a firmly bearish trend, pressured below key moving averages with no reversal signals emerging.
Momentum oscillators, including MACD and RSI, confirm dominant selling pressure and weak trend strength across technical indicators.
ALGO's expected range for the next 7 days is $0.085 to $0.105, with downside risk outweighing limited upside probabilities.

Ecosystem upgrades sustain focus amid lack of major news flow

Algorand continues to position itself as a next-generation blockchain network, emphasizing advancements in scalability, security, and decentralization compared to earlier platforms. Recent developments focus on ongoing ecosystem improvements with technological upgrades cited in the latest updates. No significant regulatory, corporate, or major ecosystem-specific events impacting Algorand were reported.

Momentum indicators reinforce bearish outlook with weak trend signals

On the weekly chart, ALGO remains firmly below its MA-20, MA-50, and MA-200 levels, while the nearest resistance is marked by the MA-20 at $0.1028. Momentum indicators confirm continued bearish sentiment: the MACD signals a strong sell, RSI is in sell territory, the Stochastic RSI shows a strong sell, and the ADX remains neutral and weak, indicating a lack of trend strength. Bull/Bear Power is only marginally positive, and the CCI is neutral. ALGO sits near the bottom of its latest weekly range with volatility elevated at 40.87%.

Bearish bias and volatility shape subdued range expectations next week

For the next 7 days, the likely trading range for ALGO is $0.085 to $0.105, reflecting the high volatility and prevailing bearish momentum on the weekly timeframe. The probability of an upward move is very low (below 20%), as none of the primary weekly indicators signal a buying opportunity. The base expectation is for sideways movement with a bearish bias unless a decisive break above $0.105 occurs. If negative momentum persists, ALGO may test further lows below $0.085 in the coming days.

Earlier, analysts noted that Algorand was exhibiting persistent bearish momentum with little evidence of a near-term recovery. The latest weekly data not only corroborates this prolonged downside bias but also raises the risk of further declines if the $0.085 level fails to hold in the coming days.

Source of Data: ALGO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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