Algorand (ALGO) crypto price has been in a strong bearish momentum after the formation of an annual high at $0.2995 on February 8, 2023. The cryptocurrency price has been witnessing a sell-off since the end of February. Recently, ALGO price formed support at $0.1050 and initiated a bullish rally but the move was disrupted as the price reached near $0.1170.
The asset price faced strong rejection above $0.1150, which induced negative sentiment in the market. ALGO price then broke the significant psychological level of $0.10, which held the price for a long time.
Currently, Algorand price has formed support at $0.0880 and is gaining bullish momentum. The price commenced a bullish rally to break and close above $0.10. The previous candle closed as a bearish candle facing rejection from $0.98. The current candle is bullish and is striving to form a support at $0.95.
If bulls can push the price above $0.1010, the price might head toward $0.1170 but it also needs to rise above support turned resistance of $0.1050. On the other hand, if the next candle can break the low of the current candle, it might retrace back toward the recent support of $0.880.
The market capitalization of Algorand is up by 0.11% to $755,173,334 at the time of writing. The 24-hour trading volume increased by 2.76%.
Algorand Plans to Incentivize Consensus
Algorand announced its planned changes in its blockchain network to improve its operation. Algorand is moving away from relays, favoring a peer-to-peer network approach. Additionally, it is working toward incentivizing consensus, aiming to boost the network level of decentralization.
Incentivizing consensus will have two significant impacts. First, the Algo Network will have more channels to facilitate peer-to-peer propagation. Second, it underscores a potential impact on ALGO demand.
Will ALGO Price Rise Above $0.10?
The cryptocurrency price has climbed above the 20-day EMA, indicating a rise in bullish momentum. The Chaikin money flow score is 0.13, suggesting strength and capital inflow in the market.
The relative strength index has jumped above the 50 neutral mark, implying a rise in the participation of bulls in the market. The long-short ratio is 1.06, with 51.57% longs and 48.43% shorts, suggesting a higher participation of buyers in the last 24 hours.
Conclusion
The bullish momentum does not necessarily show that bears are done with their part. Traders should wait for proper confirmation before entering into buying bids.
Technical Levels
Major support: $0.088 and $0.082
Major resistance: $0.1010 and $0.1170
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/18/algorand-price-prediction-will-algo-price-continue-resurgence/