$ALGO Here’s an analysis and possible trading plan for Algorand based on the short liquidation event and its price action.

Market Update for $ALGO.

A short liquidation of $1,720.8K occurred at $0.4128.

This indicates that the price moved against short sellers, causing their positions to close forcibly, and the market may have a bullish momentum in the short term.

Next Steps for $ALGO Trading.

Buy Zone Entry Price.

Look for a good buying opportunity between $0.4000 - $0.4150. This range is close to the liquidation point and acts as a potential support zone.

Target Levels Profit-Taking Points.

1. Target 1: $0.4300 (Short-term resistance level)

2. Target 2: $0.4500 Major resistance zone and psychological level.

3. Target 3: $0.4750 Extended bullish breakout target.

Stop Loss Risk Management.

Set a stop loss at $0.3900. This level is below key support, minimizing potential losses if the market reverses.

Key Observations.

1. Short Squeeze Impact.

A short liquidation typically indicates that bears are losing control, which might push prices higher.

2. Volume.

Monitor trading volume; a surge in volume around $0.4128 could confirm upward momentum.

3. RSI and Momentum Indicators.

If RSI remains above 50, it supports the bullish trend.

Trading Strategy.

1. Entry.

Wait for a small pullback to the buy zone or confirm a breakout above $0.4200.

2. Partial Profit Booking.

Book partial profits at each target level to secure gains while riding the trend.

3. Risk to Reward Ratio.

Ensure at least a 1:2 or 1:3 risk to reward ratio before entering the trade.

Disclaimer.

This is not financial advice. Please conduct your own research and consider your risk tolerance before trading.

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