Finally, ALGO Clears out 2020 Sell-Side Liquidity

Finally, Algo Clears out 2020 Sell-Side Liquidity
Share This Post

In recent weeks, a number of rumors have circulated regarding the direction of ALGO. Following the price drop, a lot of accumulators of this cryptocurrency have expressed their frustration.

From a clear standpoint, most traders in recent months have long expected the latest low price.

Finally, Algo Clears out the 2020 Sell-Side Liquidity
Source: Trading View (Monthly Time Frame)

ALGO/USDT created a Market Structure Shift (MSS) as of the 16th of April, 2023, which duly confirmed a new price direction targeting the nearest draw on liquidity. The figure below shows a break in the internal range liquidity with a preceding pullback/retracement.

Source: Trading View (Daily Time Frame)

It is valid to postulate after all confirmations ALGO was heading toward the 2020 sell-side Liquidity.

ALGO, however, is not yet complete. Let’s investigate more to determine the prospects for the future.

Keep in mind that, based on price action, every time ALGO takes liquidity, it executes a reversal move that is intended to target the following draw on liquidity or imbalances.

Remember that the market algorithm is primarily wired for two purposes as well. They include;

  • Take out liquidity
  • Fill up imbalances
Source: Trading View (Daily Time Frame)

From the figure above, we can find a Fair Value Gap yet to be filled up. This, therefore, becomes an awakening call to traders currently shorting ALGO due to the current market drive. Let’s stay vigilant as there is an expected reversal (Change of Character).

Summarily, ALGO is Ready for a bullish Impulse.

Featured image: Shutterstock

Disclaimer: The information on AlteBlock reflects the authors’ personal opinions. It does not represent AlteBlock’s opinions on whether to buy, sell, or hold specific investments. It is suggested that you conduct your own research before making any investing decisions. You use the information at your own risk. See Disclaimer for additional details.

Share This Post

Leave a Reply

Your email address will not be published. Required fields are marked *