- One analyst predicted that a rise above resistance would trigger a 300% rally for ALGO.
- Indicators suggest a correction is likely in the near term.
Algorand (something) A bullish pattern was recently violated on the charts, resulting in significant gains. In fact, at the time of writing thisThe token appeared to be approaching a downward trend line.
no way A breakout above the same level could result in a 300% hike in the coming months.
Is Algorand ready for a double breakthrough?
Renowned cryptocurrency analyst World of Charts shared a tweet a few days ago about ALGO breaking above a bullish descending wedge pattern. Since the breakout, the token has been generating 50% returns. With this, Algorand’s price has risen by more than 32% over the past seven days.
Thanks to ALGO’s recent price rise, the altcoin’s social dominance has skyrocketed. This is a sign of growing popularity.
The token also saw a spike in weighted sentiment, indicating an increase in bullish sentiment. Additionally, the altcoin’s price increase was supported by a significant increase in trading volume.
Source: Santiment
ALGO’s recent price action has pushed ALGO towards another resistance level. According to a tweet from World Of Charts, if a successful breakout occurs, ALGO could see its price rise by 300% in the coming months.
Although the 300% increase is a long-term goal and seems unrealistic in the short term, AMBCrypto still evaluated the token’s on-chain data.
Bullish Breakout Probability
Coinglass data shows that ALGO’s open interest (OI) has increased dramatically. It may seem optimistic at first glance, but the reality may be quite different.
Historically, whenever ALGO’s OI reached press time levels, a price correction followed. A similar episode occurred in April, when the price of ALGO fell to $0.17 after OI surged.
Source: Coinglass
At the time of this writing, Algorand Fear and Greed Index It has a value of 71, which means the market is in the “greed” phase. When market sentiment becomes greedy, the likelihood of a price correction always increases.
The price chart showed that ALGO’s price was well above the upper Bollinger Band limit, suggesting a possible price correction. If that happens, ALGO could fall back to $0.18.
Source: TradingView
The altcoin liquidation heat map also revealed similar possibilities. At the time of this writing, the token had a strong liquidation bottom near $0.16-$0.18.
If the price declines, ALGO will have the opportunity to regain bullish momentum in that range.
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However, if the uptrend continues to get stronger, it would not be too unrealistic to expect the token to reach $0.3 by the end of November.
Source: Coinglass