Algorand [ALGO] The altcoin has been struggling to recover from the market’s downturn. It is currently trading at only 15% over its all-time-low of late March. Altcoins are now trying to recover, and several technical signals as well as on-chain indicators suggest a bullish future if certain levels remain.
ALGO: can it maintain its bullish position?
Algorand chart continues to be favorable for a rebound.
The price was still within the two bullish patterns on the upper timeframe: A Symmetrical triangle and a Cup and Handle pattern. These patterns are known to have preceded previous rallies.
Algorand [ALGO] To confirm the setup, it would be necessary to breach above the resistance line descending.
ALGO, in the near term, entered a critical supply zone. Sellers stepped up and caused the most recent pullback. The level $0.092 remains a crucial support area.
ALGO may rebound if buyers protect it and test overhead resistance.
If the triangle is rejected, the asset could be sent back to its lower support. If the asset drops below $0.088, both bullish patterns would be invalidated and there is a greater risk for further decline.
What do the indicators tell us?
Technical indicators continue to signal underlying strength.
Moving Average Convergence Divergence, or MACD for short, recently formed a cross with the MACD moving over the signal line. This crossover is often indicative of a stronger buying trend.
Moreover, the lines have also moved into positive territory. The bullish outlook could be reinforced if the price moves up above zero.
The Relative Strength Index was hovering near neutral. It was clear that the momentum had remained neutral, and ALGO did not have a clear bias.
The market is therefore vulnerable to a further pullback or a possible recovery.
Do Algorand’s Whales control the Trend?
A lot of ALGO’s future prospects may depend upon whale activity.
The whale versus retail delta is dominated by larger holders, which indicates that the market remains primarily driven by large investors. This dynamic indicated that the buying pressure would remain low unless retail demand or whale participation increased.
Spot Netflows on the contrary, show persistent selling pressure.
The market experienced a $29.23-million selloff followed by a $1.75-million net outflow over the last 15 trading days. Algorand showed early signs of improvement. But the whale activity, and the defence of important support levels remain critical for any upswing.
Final summary
- ALGO remains above a crucial support zone of $0.092 – $0.088.
- MACD formed an arrow-shaped cross. This suggests that the buying force may be returning.
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Source: ambcrypto.com
