Algorand (ALGO) Price Analysis: Is a Breakout Rally To $0.600 On the Horizon?

Lately, Algorand (ALGO) has been in the news. The token has surpassed the falling wedge pattern’s trendline barrier.

Algorand (ALGO) price encountered a falling wedge pattern on the technical chart. This pattern is usually bullish and traders anticipate a breakout from it.

After أيام of consolidating within this pattern, buyers finally pushed the price out of it. This breakout occurred with a rise of over 22% in just seven days.

Now, traders are eyeing a breakout rally towards the next crucial resistance levels. As per analyst Rose Premium Signals on X, this breakout could lead ALGO towards a massive bull run.

He shared a technical analysis on X, highlighting a double bottom pattern on the daily chart. This pattern is formed when the price makes two lows, followed by a rebound from each low.

The Algorand price confirmed this pattern by showing a bounce from the lower trendline of the wedge. After this breakout, the price quickly moved up, indicating a bullish momentum.

According to Premium Signals, this breakout and the technical analysis on the daily chart suggest a further rise in the coming days.

He also mentioned key resistance levels on the Fib retracement that could hinder this rally. These levels are placed at $0.4799, $0.5421, and $0.5946 in the short term.

Technical Analysis for ALGO Price: A Bullish Uptrend in Sight

Analyzing the daily price chart, the price action and technical indicators on the 1 Dayの時間枠 for Algorand depicted a bullish outlook.

The price had broken out of the falling wedge pattern, indicating a reversal signal. It also crossed above the significant moving averages, indicating a buying spree in the past seven days.

The Relative Strength Index (RSI) had a reading of 55, indicating a slightly positive outlook. It had not yet reached the overbought levels, indicating more room for upward movement.

However, the Chaikin Money Flow (CMF) still showed negative readings, indicating liquidity concerns in the market.

Bullish Shift in Sentiment as per Liquidation Data

As per the liquidation data from Coinglass, ALGO’s liquidation data showed a total of $40.47k in short liquidations compared to $92.3k in longs, indicating a bullish sentiment in the recent sessions.

However, the long/short ratio signals a mixed stance as 49% of longs compared to 51% of shorts were noted in the major exchanges.

The ongoing rally might trigger short liquidations if it sustains beyond $0.4000, which could fuel a follow-on rally in the coming days.

The Open Interest (OI) increased by over 4.20%, reaching $125.09 Million, indicating a sustained buildup activity in the past 24 hours.

The immediate support zones for the Algorand price were at $0.3800 and $0.3650, while the resistance zones were at $0.4200 and $04670.