Date: Sun, Jan 05, 2025, 04:42 AM GMT
In the first week of the new year, the cryptocurrency market is witnessing notable upside rallies across major altcoins, fueled by a decline in Bitcoin's (BTC) dominance. BTC dominance has dropped from 58.12% on December 31 to today’s 56.89%.
This shift has paved the way for altcoins like Algorand (ALGO) to make significant recoveries, with $ALGO surging over 20% this week.
Source: Coinmarketcap
Technical Setup Suggests a Potential Upside Move
As shown in the accompanying chart, Algorand (ALGO) has broken out of a falling wedge pattern on the 8-hour timeframe, a bullish setup that often signals the beginning of upward price movement. Prominent analyst @JohncyCrypto emphasizes that this breakout, combined with the token trading above the 100-period moving average (MA), suggests strong bullish momentum is building.
Source: @JohncyCrypto (X)
The current price of ALGO sits around $0.4129, and a confirmed bounce from the 100 MA could propel the price further toward critical resistance levels at $0.472, $0.530, and $0.600. These targets represent potential gains of 14%, 28%, and 45%, respectively, from the current price.
The RSI indicator is also trending above 63, signaling that buying pressure remains strong and further gains are possible if this momentum continues.
Bitcoin Dominance and Altcoin Momentum
The broader market dynamics are also favorable for Algorand’s recovery. Bitcoin dominance has fallen below 57%, creating an environment where altcoins are drawing increased investor interest. With Bitcoin stabilizing above $98,000, traders are turning to altcoins like ALGO for opportunities to capture higher returns.
This sentiment shift has provided ALGO the momentum needed to capitalize on its bullish technical setup, further supported by increasing trading volumes and heightened investor confidence.
Conclusion: Are More Gains Ahead?
Algorand’s breakout from the falling wedge and its ability to maintain momentum above the 100 MA suggest a promising outlook. If the token successfully breaks through the mentioned resistance levels, a rally toward $0.600 could solidify its position as one of the top-performing altcoins in the early weeks of 2025.
However, traders should remain cautious as sustained volume and broader market support are essential for ALGO to overcome these resistance levels. As always, market conditions and Bitcoin’s price movements will play a pivotal role in determining ALGO’s trajectory.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
