Algorand [ALGO] Faces Potential Short-Term Declines Amid Bearish Signals and Diminished Demand
The post Algorand [ALGO] Faces Potential Short-Term Declines Amid Bearish Signals and Diminished Demand appeared on BitcoinEthereumNews.com.
As Algorand (ALGO) faces a significant decline in momentum, market indicators suggest a potential continuation of bearish trends. Despite a remarkable surge of 480% in the previous month, current market conditions have shifted, leading to weaker demand dynamics. “The two volume indicators highlighted how Algorand bulls were losing strength quickly over the last ten days,” stated a COINOTAG analysis. Algorand faces declining market sentiment as recent bullish momentum wanes, opening the door for possible further losses in the coming days. Algorand losing bullish momentum The recent price action of Algorand (ALGO) has indicated a significant shift away from its previous bullish run. After hitting a local high of $0.613, ALGO has retraced back, especially as Bitcoin (BTC) showed stronger bullish signals. Market analysts note that the market structure has flipped bearishly on the 1-day chart since December 9, leading to increased uncertainty in ALGO’s short-term outlook. Source: ALGO/USDT on TradingView Market indicators such as the Chaikin Money Flow (CMF) and the Accumulation/Distribution (A/D) indicator have shown a significant decline, indicating that capital inflows are diminishing. The current reading of the CMF of +0.01 suggests a neutral stance that lacks the strength required to reverse the negative trend. As pressure mounts, market analysts are eyeing the Fibonacci retracement levels, especially the 50% level of $0.36, which has previously acted as a support level. Should the downward trend continue, levels at $0.30 and $0.2145 might come into focus over the next few months, depending on broader market sentiment. Potential recovery hinges on market sentiment Source: Santiment Data from Santiment highlights that the weighted sentiment for Algorand has seen a drop from its slightly positive trajectory two weeks ago. Coupled with a decline in development activity—stagnating at zero contributions since December 10—this reflects a potential market anomaly likely attributable to seasonal factors. Source:…
Filed under: News - @ December 15, 2024 1:21 am