Key Insights
- ALGO flips 200 EMA on multiple timeframes, signaling early signs of short-term bullish momentum.
- Falling wedge pattern supports breakout case, with $0.27–$0.28 as short-term resistance range.
- Strong network growth backs price action, with staking, TVL, and smart contracts all rising.
Algorand (ALGO) has shown early signs of a shift in momentum after reclaiming important moving averages on the 1-hour and 4-hour charts. The 200 EMA, which acts as a key indicator for trend direction, has been flipped on both timeframes. At press time, ALGO was trading just above $0.2532 on the 4-hour chart, signaling bullish short-term price behavior.
The $0.2500 level, previously acting as a strong resistance, has turned into a support zone. This area has held well through recent price tests, and the bounce above the 200 EMA marks a possible continuation of upward momentum. The price structure shows early signs of strength, and technical patterns suggest that the next potential price area to monitor is around $0.32.
Falling Wedge Pattern Indicates Breakout Setup
On the 8-hour chart, ALGO is forming a falling wedge pattern, which is commonly associated with breakout setups. The price is sitting at the lower trendline of the wedge, a level that has been respected multiple times over the last month. The chart formation is tightening, which often leads to price movement in either direction.
According to on-chain observer Cas Abbé, “$ALGO is sitting at the bottom of a falling wedge… a breakout toward $0.27–$0.28 is in play.” The wedge’s upper resistance trendline is positioned near that range, and if the pattern follows through, it may serve as a short-term price target before any larger moves toward $0.32 can be considered.
Fundamentals Show Strong Network Growth
Recent data around Algorand’s network activity supports the price move. The platform was recently selected by India’s government-backed Future Skills Prime program as its exclusive blockchain partner. This development could help increase ALGO’s visibility and use in real-world applications.
Staked ALGO rose 29% quarter-over-quarter. Validator growth has also continued, contributing to the network’s decentralization. In parallel, total value locked (TVL) has gone up by 33%, stablecoin capitalization by 20%, and smart contract deployments increased by 117%. These numbers suggest that user activity and developer interest are both rising.
Daily Chart Reflects Price Compression
On the daily chart, ALGO is trading just under the 50-day simple moving average (SMA) at $0.2555 and slightly above the 200-day SMA at $0.2506. The current price is $0.2548. These levels are key because they act as markers for trend direction. Being between them often reflects indecision or a setup before a move.
The RSI (Relative Strength Index) is at 49.80, sitting around the midpoint. This shows that momentum is currently balanced, and traders may be waiting for a breakout above the moving averages for confirmation of direction.
At press time, ALGO is priced at $0.255, with a 24-hour trading volume of $110.5 million. The token has gained 5% in the last 24 hours but remains down 12% over the past seven days. The $0.32 level remains in focus if the current trend continues and price breaks above short-term resistance.
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Source: https://coincu.com/analysis/algo-eyes-0-32-after-smashing-resistance/