Has ALGO managed to regain its footing? In the past week, we’ve seen a significant 20% recovery from the $0.09 support level, indicating that ALGO bounces back. This has sparked a renewed interest from buyers, hinting at potential further gains. However, the bearish structure that has dominated ALGO’s market since mid-April remains a concern.
Is There an End to ALGO’s Bearish Trend?
Algorand (ALGO) has been grappling with intense selling pressure. However, it has recently bounced back from a critical support level, putting a halt to the bearish onslaught. Despite the series of All-Time-Lows (ATLs) ALGO hit in late Q2 and early Q3 2023, the recent 20% bounce from the $0.09 support level has provided a glimmer of hope for a sustained bullish rebound.
As of the time of writing, ALGO is trading at $0.10. The on-chart indicators suggest a continuation of the bullish rally. The Relative Strength Index (RSI) stands at 59, rising above the neutral 50, and signifying increasing buying pressure. The Chaikin Money Flow also indicates strong capital inflows with a reading of +0.21.
What’s Next for ALGO?
On the lower timeframes, the RSI teeters on the brink of the overbought zone, hinting at both short-term and long-term bullishness for ALGO. The first hurdles for the bullish rally lie at $1.20 (bearish lower low) and $1.40 (resistance level). If these levels are successfully cleared in the coming days, we could see a short-term shift in ALGO’s bearish structure.
What Does the Data Say?
Data from Coinalyze indicates that the bullish charge could gather more momentum. The Spot CVD surged on 20 September and has maintained its upward trend. This is a strong indication that prices could continue to rally high. Even though the Funding Rate has been fluctuating, the overall bullishness on ALGO’s chart could lead to further gains for buyers.
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