KEY TAKEAWAYS
Allora (ALLO) launched on November 11 and immediately crashed by over 50%.
The ALLO price broke out from a descending parallel channel.
Can Allora recover after its rocky launch, or will its price continue to fall?
Allora Network launched its ALLO token on Nov. 11. Allora is building a Proof-of-Intelligence Layer, a network where AI models learn and reward each other.
The idea behind it is to create a self-improving AI system comprising multiple models that work together.
However, the price crashed immediately after launch and is already down by more than 50%.
Let’s examine the charts and figure out if ALLO can reverse its bearish trend.
ALLO Token Launch
On Nov. 11, Allora Network announced the launch of the Allora Mainnet and the ALLO token.
ALLO is the native token of the Allora chain, which powers Allora Network, fueling transactions and providing staking rewards.
Allora is available on centralized and decentralized exchanges, including Binance, OKX , Bitget, and Kraken.
As part of the token distribution, Allora community members received either an allocation, an airdrop or prime eligibility based on their contributions.
Binance allocated 15 million tokens, which is 1.5% of the total supply, to users who participated in the HODLer airdrop projects.
However, this liquidity surge might have caused the crash, as their selling pushed the token’s price downward.
Allora Price Breaks Out
The Allora price fell shortly after its launch, declining within a descending parallel channel.
After hitting a low of $0.425 on Nov. 12, ALLO began an upward movement and broke out of the channel.
Today, Allora attempts to validate the channel as support, which could spark an upward movement if successful.
In that case, the price could increase to the $0.62 resistance, which is the 0.618 Fibonacci retracement level and a horizontal resistance area.
However, Allora has yet to begin its ascent, and trades below its pre-breakout level.
Additionally, there is limited price history to consider, making the ALLO analysis more likely to be inaccurate.
As a result, whether Allora falls back inside the channel or bounces could be key for the future trend.
While a bounce could trigger a rally to $0.62, a fall back in the channel’s confines could take the price down to new lows.
ALLO Price Trend Uncertain
ALLO launched in the middle of a crypto crash, and the price fell sharply after launch.
The future trend is uncertain, and depends on whether the token can sustain its channel breakout or not.
