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Algorand: Range-bound extension depends on this

2min Read

ALGO enters a narrow price consolidation amidst BTC fluctuations above $30k. What’s next after the consolidation – a rally or plunge?

Algorand: Range-bound extension depends on this

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • ALGO’s recent uptrend morphed into a short-term, narrow consolidation. 
  • Buying volumes and Open Interest rates increased – a boost to bulls.

Algorand [ALGO] is riding on the prevailing bullish sentiment to recover recent losses. The token dropped from $0.15 to about $0.90 after being categorized as “security” during the SEC lawsuit against Binance [BNB] in early June. But it rebounded and traded at $0.13 at press time, up about 25% after edging above $0.10 on 10 June. 


Is your portfolio green? Check out ALGO Profit Calculator 


The Algorand ecosystem bagged a new partnership from DFW Labs, a global Web 3 investment firm, with an initial purchase of $50 million ALGO tokens for liquidity injection. But the lower timeframe price charts haven’t reacted to it as of press time. 

ALGO enters range formation

Source: ALGO/USDT on TradingView

After climbing above $0.10 on 10 June, ALGO has been making new higher highs and lower lows – defining an uptrend. But the rally faltered at $0.14, setting it up for a range formation within 61.8% ($0.13) – 78.6% ($0.14) Fib levels.

ALGO has been constricted in this range for the past four days, taking a cue from Bitcoin’s [BTC] fluctuations below $31k. If BTC’s consolidation persists, ALGO traders can target range extremes ($.13 & $0.14) for profits in the next few hours. 

A breach below the range will invalidate the neutral bias. The drop could ease to the 50% Fib level of $0.13 but will further weaken the H4 structure, flipping it to bearish. 

The RSI (Relative Strength Index) and CMF (Chaikin Money Flow) were below key neutral levels, denoting a slight dip in buying pressure and capital inflows. 

However, the picture differed on higher timeframes, especially the weekly chart. Notably, Galaxy Trading, a crypto technical analyst on Twitter, believes that ALGO’s weekly chart is gold as it presents a massive accumulation opportunity. 

Galaxy’s projection was based on the weekly chart retesting a critical demand zone in early 2022, with targets at $0.51 and $0.73, respectively. 

Source: Galaxy Trading via Twitter


How much is 1,10,100 ALGOs worth today?


Demand increased in the futures market

On the 1-hour chart, the CVD (Cumulative Volume Delta) and Open Interest (OI) increased in the past few days. It means buying volumes and contracts in the futures market increased – a bullish sentiment that could spell a potential upside, especially if BTC continues to rally. 

Source: Coinalyze

But the metrics flattened in the past few hours. This reinforced the potential short-term range extension before a pump or a dump. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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