Key Notes
- Active addresses on Algorand surge from 62.42K to 167.08K in six months.
- Breaking $0.2952 could push ALGO towards $0.85.
Bitcoin BTC $97 263 24h volatility: 1.7% Market cap: $1.93 T Vol. 24h: $20.08 B is back above the $96,000 mark, sparking discussions about a potential altcoin season. Amid speculation of a new altcoin season in 2025, Algorand is positioning itself as a top contender.
The ALGO price ALGO $0.26 24h volatility: 3.1% Market cap: $2.24 B Vol. 24h: $74.70 M trend hints at a potential double bottom reversal. Will this reversal propel Algorand beyond the $1 psychological mark? Let’s find out.
Algorand Eyes Double Bottom Reversal at $0.25
In the daily chart, the Algorand price action reveals a massive bull run in November 2024. However, failure to sustain above the $0.50 psychological mark resulted in a steep pullback, leading to a 50% decline.
Algorand has retested the $0.25 psychological support twice this month, hinting at a potential double bottom reversal. Algorand’s price action suggests a strong rebound could be on the horizon if it maintains support at $0.25.
Despite the prevailing pullback, a local resistance trendline continues to cap bullish growth. However, the daily RSI hints at a bullish divergence, increasing the probability of an uptrend.
The neckline of the bullish pattern coincides with the $0.30 psychological mark. The potential double bottom reversal pattern hints at a strong bullish momentum, with $0.30 acting as the critical neckline.
Furthermore, intraday candles reveal lower price rejections from the 200-day SMA, adding credibility to a potential turnaround. On the contrary, the merging of the 50 and 100 SMA lines hints at a potential short-term pullback.
On-Chain Data Supports ALGO Price Rally Chances
Supporting bullish recovery chances, daily active addresses on the Algorand network have surged significantly. Over the past six months, the number of active addresses has risen from 62.42K to 167.08K.
Additionally, non-zero balance addresses increased to 33.41K from 17.02K. With a massive influx of wallet addresses, bullish momentum in ALGO may intensify. In short, the rise in active addresses, further supports the likelihood of an ALGO price rally.
Based on the Global In-Out-Of-Money Indicator, ALGO’s bull run may face resistance between $0.2689 and $0.2952. This critical supply zone holds 683.37 million ALGO tokens, acting as overhead resistance.
Breaking above this range may propel ALGO to the next target of $0.36. Meanwhile, the At-The-Money demand zone ranges between $0.244 and $0.268. This zone holds 305.03 million ALGO tokens, indicating strong buying pressure if the uptrend continues.
Long-Term Algorand Price Targets
Based on trend-based Fibonacci Levels, the next resistance for the double bottom breakout rally is $0.36, aligning with the 23.65% Fibonacci level. On an optimistic note, upcoming price targets include $0.55 and $0.85, hinting at an upside potential of more than 200% if altcoin season materializes.
A breakout rally could also fuel ALGO’s journey toward the $1 mark, provided broader market sentiment remains bullish. On the flip side, crucial support levels include the 200-day SMA at $0.2383 and the $0.20 psychological mark.
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