The caveat to Algorand’s recovery
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ALGO’s H4 structure was bearish, but a close above $0.126 could change this.
- Fluctuating funding rates could delay bulls, but a bullish BTC could favor them.
Algorand [ALGO], like the rest of the crypto market, saw relief after Bitcoin [BTC] retested the $29k mark. Interestingly, the rally was fronted after an increased institutional BTC interest from BlackRock, Deutsche Bank, etc.
Besides, the upswing happened amidst US equities’ pullback from last week’s rally, confirming the recent BTC’s negative correlation to US stocks.
ALGO was one of the beneficiaries of the BTC’s upswing. It was up 5.8% in the past 24 hours, as per CoinMarketCap, and traded at $0.123 at the time of writing.
Is your portfolio green? Check out the ALGO Profit Calculator
On 19 June, Algorand marked its 4th anniversary, highlighting key milestones, including 1 billion transactions.
2/ We've hit major milestones all with zero downtime:
✅ 1 billion transactions
✅ 31M+ accounts
✅ 29M+ blocks
✅ 7M+ ASAs
✅ 258,000+ smart contracts deployed
✅ 58 protocol releases
— Algorand (@Algorand) June 19, 2023
Can bulls push forward?
The RSI has been rising since 10 June, hitting the overbought zone at the time of writing. It denotes an improved buying pressure, further confirmed by recent accumulation as shown by the rising Accumulation/Distribution indicator.
A new leg of recovery could happen if ALGO close above the lower high at $0.1263. Near-term bulls could target upper resistance levels at $0.13 and $0.14 if ALGO pushes above $0.1263 (red line).
But ALGO’s rally could ease if it fails to cross $0.1263 and flip the H4 market structure to bullish. Sellers could exploit such a weakness. But they can only extend gains to $0.1146 or $0.1052 if they clear the 50% Fib ($0.1221) obstacle.
Funding rates fluctuated, but …
Realistic or not, here’s ALGO’s market cap in BTC terms
Despite the ALGO rallying from 10 June, the funding rates have fluctuated, undermining a solid recovery. However, bulls could be hopeful if the difference between long and short positions increases in the next few hours.
At the time of writing, long positions commanded dominance at 53.86% on the 4-hour timeframe – a short-term bullish outlook for the token. But if BTC registers a pullback, ALGO sellers could cement their positions; hence worth tracking these fronts.