Algorand (ALGO) price has entered a bullish phase, with analysts highlighting strong technical patterns that signal potential upward momentum.
Recent insights from analysts VipRoseTr and Toni_Bitcoin point to a confirmed double bottom pattern and a possible W formation, suggesting ALGO may break key resistance levels. ALGO price increase to $0.4112 in the last 24 hours.
Algorand Price Set for a Breakout?
Analyst VipRoseTr has pointed out a 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. So no further downward movement is expected.
The breakout of the long-standing descending trendline has validated this pattern, pointing towards an upward move.
The analyst has outlined three key resistance levels for ALGO, 0.4799, 0.5421 and 0.5946 respectively.
The initial support level is at $0.4799. It is a crucial level that needs to be held to confirm further upward movement.
At the same time, $0.5421 corresponds to prior consolidation areas, and $0.5946 is a crucial level for ALGO’s rebound.
The volume trend also points to this bull scenario. New buyers are coming into the market and pushing the price higher.
Current support now stands at $0.40 while support at $0.34 where the double bottom was made remains key to the upside break.
VipRoseTr projects ALGO to ascend to $0.5946, highlighting its bullish potential if the current trend persists.
Analyst Toni_Bitcoin: W Pattern signals Bullish Reversal
Another view is shared by analyst Toni_Bitcoin who pointed out a W pattern formation on Algorand price chart.
Like the double bottom, W pattern is another bullish reversal pattern that shows a change of trend from down trend to an up trend. Toni_Bitcoin has set a target of $0.60 should this pattern hold true as indicated above.
The confirmation of the W pattern will need a continuous price breakout above the $0.42 level combined with higher trading volume. The breakout is seen at the historical levels that support the idea of Algorand price reaching even further levels.
The analyst lays particular stress on the argument that market participation will be the key, and that strong buyer interest will be essential to support the advance.
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 per day shows a positive market trend as sentiment begins to improve.
However, trading volume has declined by 32.12% to $317.8 million and, despite this, liquidity is still fairly strong.
The market capitalization of ALGO has increased by 5.02% to $3.43 billion which shows that more and more investors are now optimistic about the future of this asset.
The minor decrease in volume shows that there is momentum but certain traders are waiting for a signal to confirm the breakout.
What Next for Algorand Price?
The bullish pressure is favourable for the ALGO, yet, the price has to overcome the vital resistance levels to continue the growth.
If ALGO manages to cross $0.42 with the help of a rally, the next stops will be $0.45, $0.4799, and $0.5421.
Such performance at these levels may open up the path to the ultimate goal of $0.60 as suggested by Toni_Bitcoin.
Conversely if the price fails to hold above the $0.40 level, we may see price action pull back to the $0.395 or lower.
The low trading volume is something to watch out for as it could negatively affect the token’s ability to sustain the ongoing rally.
