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.