Algorand: Can ALGO target $0.32 next after breaking THIS pattern?

• Algorand faced buying pressure after breaking above the $0.24 key resistance level on its falling wedge pattern in the 4-hour chart.
• Despite rising Open Interest, ALGO is yet to confirm its next direction as technical indicators flash mixed signals.

Algorand [ALGO] saw an 18.61% surge in trading volume after breaking out of its falling wedge pattern with substantial buying pressure.

At press time, ALGO surged by 5.4% and was trading at $0.250, according to CoinMarketCap. 

The altcoin has been consolidating inside a falling wedge pattern for weeks before a breakout above the $0.24 key resistance level. Following the breakout, traders wonder what is next as Algorand flashes mixed signals.

Algorand’s price action on the chart

Looking at the 4-hour chart, ALGO has gained a bullish momentum, breaking above the $0.24 key resistance level on its descending resistance trendline.

The price has been consolidating above its falling wedge pattern as the bulls attempt to confirm the breakout and price uptrend.

As buying pressure increases, ALGO could eye $0.32 in the short term while targeting the $0.40 key resistance level. Failure to sustain above the $0.24 could lead to retesting the $0.22 key level toward the $0.17 support in its falling wedge formation.

Source: TradingView

At the time of writing, Algorand’s Relative Strength Index(RSI) stands at 59, with its short-term and long-term SMAs signaling ‘‘buy’’ based on TradingView data. This indicates that the altcoin was not overbought, at press time.

The MACD(12,26) stood at -0.0213, suggesting a potential bullish momentum. However, with the EMA and mid-term SMA signaling “sell”, the uptrend is unconfirmed yet.

A look into the on-chain metrics

A majority (78%) of ALGO holders, who are large investors, are out of money after holding the token for more than a year, according to IntoTheBlock data.

ALGO has hit $72.07M in large transactions in the past week while its 24-hour long-short ratio rose to 2.19 signaling that more investors have been buying than selling. 

Source: IntoTheBlock

Algorand has seen the Total Value Locked (TVL) fluctuate lately and a decline in Q1 2025, according to DefiLlama data. 

Despite a 10% rise in Open Interest (OI) in the last 24 hours, ALGO faced equal pressure from the bulls and bears.

Source: DefiLlama

Key levels to watch 

Algorand must sustain its bullish momentum above the $0.24 key level with strong buying pressure. It should make higher highs and lows in the lower timeframe to confirm its breakout.

If the uptrend holds, the altcoin could hit the $0.32 key level while targeting the $0.40 key resistance level in the next few weeks.