Algorand Shows Potential for Further Gains as Key Levels Hold Amidst Mixed Market Signals

• Algorand (ALGO) has experienced a significant price surge as it breaks above crucial resistance levels, indicating a potential shift in market dynamics.

• Despite this upward movement, traders face uncertainty as mixed signals from technical indicators leave room for caution.

• According to a source from COINOTAG, “ALGO’s recent breakout could turn bullish if it confirms its position above key support levels.”

Algorand’s recent breakout above $0.24 raises questions about its future momentum as trading indicators remain mixed; what’s next for ALGO?

Algorand’s price action on the chart observed

Analyzing the 4-hour chart, ALGO has shown bullish momentum after surpassing the pivotal $0.24 resistance level. This break indicates a possible change in trend, as the price consolidates above the descending resistance trendline.

The sustained buying pressure could push ALGO toward the next resistance target of $0.32 in the near term, with ambitions to reach the $0.40 mark. It is crucial for the price to maintain above $0.24 to avoid retracing back to $0.22 or potentially lower towards the $0.17 support level.

Source: TradingView

As of the latest data, Algorand’s Relative Strength Index (RSI) is positioned at 59, while the short-term and long-term simple moving averages (SMAs) presently indicate a “buy” signal, according to TradingView. This suggests that ALGO has not yet entered an overbought condition.

In contrast, the Moving Average Convergence Divergence (MACD) is observed at -0.0213, hinting at potential bullish momentum. However, since the Exponential Moving Average (EMA) and mid-term SMA are indicating a “sell” signal, the bullish uptrend remains uncertain.

An analysis of the on-chain metrics

Data collected from IntoTheBlock reveals that approximately 78% of ALGO holders, particularly large investors, are currently at a loss after holding onto their investments for over one year.

Recently, Algorand has recorded $72.07 million in large transactions over the previous week, while the 24-hour long-short trading ratio has climbed to 2.19, showing a favorable shift of more buyers than sellers.

Source: IntoTheBlock

Additionally, the Total Value Locked (TVL) in Algorand has exhibited fluctuations recently and has seen a decline during Q1 2025, as per data from DefiLlama. Despite a recent 10% escalation in Open Interest (OI) within the last 24 hours, algorand is encountering equal pressure from both bulls and bears.

Source: DefiLlama

Key levels to watch for Algorand

To solidify its bullish stance, Algorand must maintain its momentum above the $0.24 key level while ensuring strong buying support. Establishing higher lows and highs on lower timeframes will be crucial to validate this breakout.

If the current uptrend persists, ALGO could reach the $0.32 resistance level, with sights set on the $0.40 range within the coming weeks.

Conclusion

In summary, Algorand’s recent price movements have brought a wave of optimism among traders, but the mixed technical indicators pose challenges ahead. Traders should remain vigilant, monitoring crucial support levels and volume trends to ensure informed trading decisions. Only time will determine if ALGO can sustain its momentum, but the current scenario offers both potential and caution.