ALGO Experiences Bullish Signal, Speculation Grows on Altcoin’s Future Movement
Algorand has seen a 12.52% surge in the last 24 hours following a decrease in the previous week. The bullish signal for Algo suggests a possible shift in trend direction.
Throughout the previous month, Algorand [ALGO] has recorded significant gains on its price charts, showing an increase of 186%.
Nevertheless, there was a market correction during the week, causing the altcoin to drop to a low of $0.35. Consequently, there was a 4.26% decline in the weekly charts following this pullback.
However, a substantial recovery has been observed in the past 24 hours, indicating a potential reversal in trend. At the time of writing, Algorand was being traded at $0.46, reflecting a 12.52% rise in the past day.
The recent market conditions raise speculations about whether Algorand is on the brink of a trend reversal.
Confirming Bullish Momentum
The current upward trend and positive market sentiment have been validated by a bullish signal. ALGO has undergone a crossover on Stoch RSI after a downtrend in the last ten days.
This crossover indicates an influx of buyers into the market, while sellers are losing their grip. Consequently, the downward trend appears to be losing momentum.
Whale Activity and Market Behavior
Furthermore, there has been a notable increase in whale activity within Algorand over the recent day. Large transactions have surged by 62.22%, rising from 180 to 292.
The rise in whale activity suggests that major holders are actively participating in the network. Coupled with an increase in buying pressure, these actions hint at the accumulation of the altcoin by significant holders.
The heightened buying pressure among large holders is evident as the inflow of funds from major holders has soared by 49.67% to $131.06 million in the past day. This surge indicates that ALGO whales are increasingly investing in the altcoin.
Market Sentiment and Long Positions
Moreover, these investors are opting for long positions, particularly observed on the 4-hour timeframes. The dominance of long positions, with 67.21% of the total, indicates a bullish stance among most investors, showcasing a demand for long positions in the market.
This inclination towards long positions is further supported by a positive DyDx funding rate. A positive rate suggests that investors are eager to pay a premium and hold their positions even during market downturns.
Such market behavior signifies positive sentiment among long-term holders.
Future Outlook
In essence, Algorand appears to be recovering from its recent setback. The bullish crossover witnessed in the past day confirms this reversal in trend.
Hence, if the current market sentiment persists, ALGO may challenge the $0.52 resistance level. A successful breakthrough above this point could propel Algo towards $0.60.
Conversely, if the bears regain control, the price of ALGO might drop to $0.40.