[Algorand price surges 32% after golden cross]
Algorand (ALGO) price rose significantly over the past 24 hours, swinging between a high of $0.408 and a low of $0.2952 and fueling expectations for it to breach the $1 mark. The main driver is the "golden cross" technical pattern on the chart.
ALGO has gained more than 60% in the past week, and its current price is $0.3939, up 32% from the intraday low. Its market value and 24-hour trading volume increased to US$3.27 billion and US$1.38 billion, respectively, an increase of 32% and 440%, indicating a significant increase in investor confidence.
In terms of technical indicators, the relative strength index (RSI) reached 83.63, which is in overbought territory but shows strong momentum. ALGO’s Chaikin Money Flow indicator (CMF) is 0.24, indicating significant buying pressure. Total open interest hit a record high of $81 million, a daily increase of 28%, indicating traders are bullish on the outlook.
The core factor driving the rally is the "golden cross" formed by the 50-day simple moving average (SMA) crossing above the 200-day SMA. This technical signal usually indicates the arrival of a bullish trend in the market. Analysts believe that ALGO could hit a $1 or even $1.26 price target next, which would result in gains of up to 300%. Although the RSI suggests a pullback is likely in the near term, overall market sentiment remains positive and the bullish trend is solid.