Algorand price has been hovering above a launch pad, hinting at a massive run-up. As ALGO coils up, investors have the last chance to hop on the bandwagon before bulls propel this altcoin.
Algorand price awaits surge in volatility
Algorand price has been consolidating above the 0.73 to $0.77 support area. This zone has absorbed the incoming selling pressure after ALGO dropped 18% between 4-6 April, cauterizing the wound. Additionally, this area also contains unfilled buy orders before ALGO rallied 35% between 21-31 March.
Therefore, a reentry into this support level will trigger these orders, leading to a quick run-up. Thus interested investors ma choose to start accumulating Algorand at the current price levels. A resurgence of the bullish momentum will be key in triggering a massive run-up for ALGO.
The first hurdle that bulls will encounter is the $0.815, flipping this level into a support barrier will open the path for Algorand price to revisit the $0.90 ceiling. This is where bulls’ strength and convection will be tested.
If the buying pressure continues to persist or increase, Algorand price could shatter the blockade and make its way toward the ultimate goal, which is a fair value gap (FVG). This price inefficiency extends from $1.1 to $1.25.
Therefore, a move up to $1.10 will be enough since market makers are likely to take over and propel Algorand price the rest of the way. In total, the run-up would constitute a 60% gain and is likely where the upside will be capped.
ALGO Perpetual Futures | Source: Tradingview
While the technical aspects of Algorand price are surely bullish, the on-chain metrics add a tailwind to it. The on-chain volume is representative of the activity on the blockchain and hence can be used to determine the capital present in a certain ecosystem.
If this value is on a downtrend, it indicates that participants are not interested. However, if the price is hinting at an uptrend with volume coiling up, it suggests that a massive move is likely possible. Considering the bullish bias from the technical standpoint, the current volume for ALGO has been hovering around 254 million since 29 March, suggesting a breakout soon,
On-chain volumes | Source: Santiment
Regardless of the optimism surrounding ALGO, a sudden flash crash in the king crypto could ruin it. With that in mind, a daily candlestick close below the March 15 swing low at the $0.675 support level will invalidate the bullish thesis.
