Algorand (ALGO) The price continues to hover above the weekly support level, but it seems to be approaching a very important milestone right now. ALGO breaking past this important turning point could trigger a pullback to trigger a bullish scenario.
Aglrorand price continues to trade above the $0.818 weekly support level and is looking for ways to break out of these levels and rise to the $1 level. Holding the $0.818 level seems highly likely as ALGO gathers liquidity below the January 22 low of $0.796.
A bounce from said level would be the key to triggering a move to the $1 psychological level and the obstacles that surround it. This move from the current position will represent a 30% rise and possibly the upside limit for ALGO will end there.
In an alternative scenario algorand priceIt could include a downside move to retest the $0.675 support level and gather liquidity below it. This move will eliminate the risk of further declines and would be the ideal scenario to retest $1. This scenario would represent a total gain of 63% from the $0.675 support level.
Algorand price IntoTheBlock’s Global In/Out of the Money (GIOM) model supports this bullish view at the $1 level. This index reveals that an average of 627,570 addresses that bought 2.7 billion ALGO tokens are currently at a loss, with immediate resistance at around $1.09.
Therefore, a selling pressure may occur by these addresses on the rise towards this level.
There could be recent spikes in the number of large transactions valued at $100,000 or more that will further support the bullish scenario for ALGO. This index serves as a proxy for the investments of high-net-worth investors. The number of such transfers increased by ten last month, indicating a slow increase in investor interest in ALGO at current price levels.
On the other hand, Algorand If the price produces a daily candlestick near $0.675, it will create a lower low and invalidate the bullish argument. This development could push ALGO price lower to find stable support levels.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.