The price of Algorand (ALGO) has entered a bullish phase, and analysts point to strong technical patterns that signal potential upside momentum.
Recent insights from analysts VipRoseTr and Toni_Bitcoin point to a confirmed double bottom pattern and a possible W formation, suggesting ALGO could break through key resistance levels. The price of ALGO rose to $0.4112 in the last 24 hours.
Algorand price set for breakout?
Analyst VipRoseTr highlighted the double bottom pattern which is typically a bullish reversal pattern.
The two bottoms formed around the $0.34 level show that there is strong buying pressure. Therefore, no further downward movement is expected.
A break of the long-term downtrend line confirmed this pattern, indicating an upward move.
The analyst listed three key resistance levels for ALGO, 0.4799, 0.5421 and 0.5946.
– Advertisement –
The initial support level is $0.4799. This is a key level that needs to be maintained to confirm further upward movement.
At the same time, $0.5421 corresponds to previous areas of consolidation, and $0.5946 is a key level for ALGO’s recovery.
The volume trend also points to this bullish scenario. New buyers are coming to the market and raising prices.
Current support now stands at $0.40, while support at $0.34 where a double bottom was made remains key for a breakout to the upside.
VipRoseTr predicts that ALGO will rise to $0.5946, highlighting its bullish potential if the current trend continues.
Analyst Toni_Bitcoin: W pattern signals a bullish reversal
Another view is shared by analyst Toni_Bitcoin, who pointed to the formation of a W pattern on Algorand’s price chart.
Like the double bottom, the W pattern is another bullish reversal pattern that shows a trend change from a downtrend to an uptrend. Toni_Bitcoin has set a target of $0.60 if this pattern holds as stated above.
Confirmation of the W pattern will require a sustained price break above the $0.42 level combined with higher trading volume. The breakout is seen at historical levels which support the idea that the price of Algorand will reach even higher levels.
The analyst places particular emphasis on the argument that market participation will be key, and that strong customer interest will be key to support the move forward.
ALGO’s daily price performance and market metrics
ALGO is currently up 4.02% in the last 24 hours and is trading at $0.4112. The trading range of $0.3953 to $0.4112 on the day shows a positive market trend as sentiment starts to improve.
However, trading volume fell by 32.12% to USD 317.8 million and, despite this, liquidity is still quite strong.
ALGO’s market capitalization increased by 5.02% to $3.43 billion, which shows that more and more investors are now optimistic about the future of this asset.
A minor decrease in volume shows that there is momentum, but certain traders are waiting for a signal to confirm a breakout.
What next for Algorand Price?
Bullish pressure is favorable for ALGO, but the price needs to overcome vital resistance levels to continue its growth.
If ALGO manages to cross $0.42 with the help of the upside, the next stops will be $0.45, $0.4799 and $0.5421.
Such a performance at these levels may pave the way for an ultimate target of $0.60 as suggested by Toni_Bitcoin.
Conversely, if the price fails to hold above the $0.40 level, we may see a pullback to $0.395 or lower.
Low trading volume is something to watch out for as it could negatively impact the token’s ability to sustain ongoing growth.
