Algorand set to have a bullish breakout this week – Here’s why
The $0.1396 swing high is key for both a long-term trend reversal and a short-term bullish trend continuation.
Algorand [ALGO] was touted as a promising real-world asset altcoin that could pump this week. Popular crypto analyst Ali Martinez drew attention to the bullish chances of ALGO.
The altcoin was still stuck below the $0.14 local resistance level. Describing it as a channel, the analyst wrote that a daily session close above this level would confirm a breakout toward $0.19.
Assessing Algorand’s bullish chances
In the past 24 hours, Algorand has rallied 10.1%, with a 41.6% increase in daily trading volume. A handful of other altcoins have made similar gains following the Bitcoin bounce toward $84k on Sunday, the 11th of October.
The market-wide bounce spurred $191 million in liquidations in a day, with $141 million of them being short. Algorand’s share was $141.3k in short liquidations compared to just $19.8k in long liquidations.
Since posting the low of $0.0757 in late July, ALGO bulls have driven a sizeable rally that challenged the $0.1396 swing high from May. A post-quantum roadmap and increased network activity helped fuel bullish short-term sentiment.
A brief price move above it was beaten back, and the altcoin fell to $0.115, but has since bounced to $0.126. While this appeared to be a good outcome in the short term, the daily swing structure was still bearish.
A daily session close above $0.14, as the analyst pointed out, would be a solid start to a trend reversal. The next swing high on the daily timeframe was at $0.19, explaining ALGO’s next target.
Traders’ call to action – Wait for confirmation to buy
Traders can choose a more aggressive approach and buy ALGO soon, or wait for a daily structure break and a subsequent retracement before buying. The latter approach would involve waiting for a confirmation.
The 4-hour structure was firmly bullish. The 78.6% Fibonacci retracement level was tested and has yielded a bullish response. A move above $0.1396 would be the bullish continuation buyers could wait for.
Final Summary
- Algorand may be one RWA altcoin that is to have an outstanding week on the price charts.
- The proximity to the $0.1396 swing high, which is key for both a long-term trend reversal and a short-term bullish trend continuation, explains these bullish expectations.
