ALGO bounces back but retains its bearish structure

Posted: September 24, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• ALGO registered a 20% bounce off the $0.09 support over the past week.
• Surging Spot CVD hinted at strong interest from buyers for further gains. 

Algorand [ALGO] bounced off a critical support level to halt the intense selling pressure on the altcoin. ALGO bears have dominated the price action since mid-April, with bulls getting wiped out at every support level.

How much is 1,10,100 ALGOs worth today?

Meanwhile, Bitcoin [BTC] continued to trade at $26.5k as the king coin’s correction extended into the weekend.

Bulls halt trend of ATLs

Source: ALGO/USDT on Trading View

ALGO’s bearish market structure has seen it hit a series of All-Time-Lows (ATLs) in late Q2 and early Q3 2023.

However, a 20% bounce from the $0.09 support level has given buyers a glimmer of hope to mount a sustained bullish rebound. With ALGO trading at $0.10 as of the time of writing, the on-chart indicators supported a continuation of the bullish rally.

The Relative Strength Index (RSI) rose above the neutral 50 and stood at 59, signifying the rising buying pressure. Similarly, the Chaikin Money Flow highlighted strong capital inflows with a reading of +0.21.

On the lower timeframes, the RSI stood at the edge of the overbought zone. This hinted at both short-term and long-term bullishness for ALGO.

The bullish rally’s first hurdle to overcome lies at $1.20 (bearish lower low) and $1.40 (resistance level). If bulls successfully clear these levels in the coming days, ALGO could flip its structure bullish in the short term.

Sharp rise of Spot CVD showed huge demand behind ALGO

Source: Coinalyze

Realistic or not, here’s ALGO’s market cap in BTC’s terms

Data from Coinalyze pointed toward the bullish charge gathering more momentum. The spot CVD surged on 20 September and has maintained its uptrend. This was a strong indication that prices could continue to rally high.

Although the Funding Rate wavered, the overall bullishness on ALGO’s chart could see buyers register further gains.