Last week, altcoin Algorand (ALGO) made a move from the important support level of $0.09. Accordingly, it made an impressive 20% jump. It also signaled a potential shift in momentum. After being dominated by the bears for months and hitting a series of All Time Lows (ATL) in the late Q2 and early Q3 of 2023, this latest surge has been a glimmer of hope for ALGO’s beleaguered bulls. As of the latest data, ALGO is trading at $0.10. Additionally, the indicators on the chart align with the possibility of a sustained bullish recovery.
Indicators support a bullish outlook for the altcoin
The Relative Strength Index (RSI), a key momentum indicator, has risen above the neutral 50 level. It is also currently at level 59. This means increased buying pressure and renewed optimism among investors. Similarly, Chaikin Money Flow (CMF) is at +0.21, highlighting strong capital inflows for the altcoin.
On the lower time frames, the RSI is on the edge of the overbought zone. It indicates both short-term and long-term bullish sentiment for the altcoin ALGO.
Obstacles on the road to recovery
While the bullish rally is promising, altcoin ALGO faces significant hurdles on the road to recovery. Initial challenges lie at $1.20 (a bearish low) and $1.40 (a notable resistance level). If the bulls manage to successfully surpass these levels in the coming days, it could pave the way for a short-term rally for ALGO.
There was an increase in the Spot Cumulative Volume Delta (CVD) observed on September 20. Accordingly, it underlines the increasing demand for the altcoin ALGO. This indicator indicates that prices may continue to rise with the support of increased interest and purchasing activities.
Continuing momentum
Despite some fluctuations in the Funding Rate, the overall sentiment on altcoin ALGO’s chart appears to be in an upward trend. It also potentially allows buyers to earn more. ALGO is trying to break out of the downtrend. On the other hand, its latest bounce provides a glimmer of hope for both traders and investors.
When we look at Kriptokoin.com, it is noteworthy that the altcoin Algorand has recently jumped from an important support level. It is also a positive development for the cryptocurrency and indicates a possible trend reversal. Although challenges remain, the alignment of fundamental indicators suggests that a sustained bullish rally could be on the horizon for ALGO. It also provides new optimism in a market that has been dominated by bears for months.
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