Algorand price could trigger a massive bear trap above $0.75

 Algorand price is currently down over 12% for the day, matching the average losses of the market. However, ALGO has seen buyers step up and begin a strong defense at the $0.63 value area.

Algorand price could trigger a massive bear trap above $0.75

Algorand price action on the daily chart is one of the better positioned altcoins to trigger a strong bullish reversal. While ALGO recently made new 2022 lows as recently as April 30, the post-low price action has been bullish, with buyers showing conviction to test higher.

The critical price level that bulls need to target to begin the test of a bullish breakout is above the current high volume node and the 88.2% Fibonacci retracement at or above $0.75.

From there, the 2022 Volume Profile thins out considerably, giving bulls an easier opportunity to breakout above the Ichimoku Cloud and to test the 2022 Volume Point of Control at $0.95.

If bulls fault to support Algorand price, then the next likely support zone bears will push ALGO to is the final high volume node in the 2021 Volume Profile at $0.45. In that scenario, ALGO would produce a several major all-time lows in its oscillators, likely triggering a massive corrective move higher.

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