Algorand [ALGO] Surges 18.61%: A Breakout from Falling Wedge Signals Big Gains!

Algorand [ALGO] Breaks Key Resistance – Will the Uptrend Continue to $0.40?

Algorand (ALGO) saw an 18.61% surge in trading volume after breaking out of its falling wedge pattern with substantial buying pressure. As of press time, ALGO surged by 5.4%, trading at $0.250, according to CoinMarketCap.

Bullish Momentum on the 4-Hour Chart

On the 4-hour chart, Algorand gained bullish momentum, breaking above the key $0.24 resistance level. The altcoin had been consolidating within the falling wedge pattern for weeks before the breakout, signaling a potential upward trend. Traders are now watching closely for the next moves as mixed signals appear across key indicators.

Price Action and Key Levels

As buying pressure increases, ALGO could target the $0.32 level in the short term while aiming for the $0.40 resistance. However, failure to maintain levels above $0.24 could see a retracement toward the $0.22 support, possibly testing the lower end of the wedge. The Relative Strength Index (RSI) currently stands at 59, suggesting that the altcoin is not overbought, with short-term and long-term SMAs signaling a “buy” based on TradingView data.

On-Chain Metrics and Market Sentiment

According to IntoTheBlock data, a significant portion of Algorand holders (78%) have been in the red after holding the token for over a year. Despite this, Algorand saw large transactions totaling $72.07M in the last week. Open Interest (OI) increased by 10%, indicating growing investor interest, with more investors buying than selling.

What’s Next for ALGO?

To sustain its bullish momentum, Algorand must maintain price levels above $0.24, aiming for higher highs and lows to confirm its breakout. If the uptrend continues, ALGO could target $0.32 and beyond, with $0.40 as a key resistance level in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.