$ALGO

Algorand (ALGO) trading volume surges 130%, but data suggests a correction is likely

ALGO Price Prediction: A pullback is likely

From a chain perspective, the In-Money-Out-Of-Price (IOMAP) indicator shows that ALGO price is less likely to trade higher. IOMAP ranks addresses based on those that are in the money, at breakeven, and out of the money.

Using this data, support and resistance can be determined. Typically, the higher the volume or addresses, the stronger the support or resistance. At the time of publication, 146,530 addresses hold 48.64 million in-the-money ALGO, purchased at an average price of $0.40.

However, at $0.42, 219,340 addresses hold 333 million out-of-the-money ALGO. This suggests that Algorand price is facing significant resistance, which could push it back.

If this situation continues, ALGO may drop to $0.35. However, if Algorand trading volume increases with heavy accumulation, the price may jump towards $0.50.