Algorand Shows Signs of Bullish Reversal as ALGO Price Approaches $0.25
Bitcoin is currently trading above $96,000, raising speculation about an upcoming altcoin season. Algorand (ALGO) is emerging as a key player.
Algorand's Price Analysis
- ALGO shows signs of a potential double bottom reversal at the $0.25 support level.
- The price experienced a significant increase in November 2024 but fell by 50% after failing to hold above $0.50.
- Current price action suggests a rebound may occur if it maintains support at $0.25.
- A bullish divergence indicated by the daily RSI increases the likelihood of an uptrend.
- The critical neckline for the bullish pattern is set at $0.30, suggesting strong upward momentum.
- Intraday candles show lower price rejections from the 200-day SMA, supporting a potential turnaround.
- However, the merging of the 50 and 100 SMA lines indicates a possible short-term pullback.
On-Chain Data Insights
- Active addresses on the Algorand network rose from 62.42K to 167.08K over six months.
- Non-zero balance addresses increased from 17.02K to 33.41K, indicating heightened activity.
- This influx of wallet addresses supports the possibility of an ALGO price rally.
- The Global In-Out-Of-Money Indicator suggests resistance between $0.2689 and $0.2952 due to substantial overhead supply.
- A breakout past this range could target $0.36, while strong buying pressure exists between $0.244 and $0.268.
Long-Term Price Projections
- Key resistance for a double bottom breakout is at $0.36, aligned with the 23.65% Fibonacci level.
- Potential bullish targets include $0.55 and $0.85, allowing for over 200% upside if an altcoin season occurs.
- A successful breakout may drive ALGO toward the $1 mark, contingent on overall market sentiment.
- Support levels to monitor are the 200-day SMA at $0.2383 and the psychological mark of $0.20.