Why Is Algorand (ALGO) Price Up? Analyst Predicts a 300% Rally
Some “old” cryptocurrencies are waking up this week. By old, we mean altcoins that were popular in the previous bull run (2019-2021).
One of these awakening tokens is Algorand, with the ALGO price surging 20% today and 50% this week. It’s currently trading around $0.20. Prominent crypto analyst World Of Charts has updated his ALGO price outlook via X.
Another one is XRP, of course. But, let’s focus on Algo now.
Algorand (ALGO) Chart Analysis and Recent Performance
ALGO is currently testing a major descending trendline after breaking out from its initial resistance level around $0.125, which has already resulted in a 50% gain. This recent price action follows a successful breakout from a smaller descending trendline, which triggered the current rally.
The price movement appears to be following a falling wedge pattern, which is typically considered a bullish structure. This pattern, combined with the recent breakout, suggests potential for a second leg of upward movement if ALGO can successfully break through the current descending trendline resistance.
The analysis projects a potential 300% rally from current levels in the midterm, suggesting ALGO could reach approximately $0.80. The immediate resistance lies near the $0.22-$0.25 range, marked by the descending trendline. If broken, subsequent resistance levels could form at $0.40 and $0.60 before approaching the $0.80 target
Key support remains at the breakout region around $0.125, which could provide a safety net in case of any price retracements
Since breaking the initial descending trendline, the ALGO price has maintained strong momentum with its 50% increase. A successful breakthrough of the larger trendline could confirm a long-term reversal and potentially lead to sustained bullish activity. However, traders should monitor trading volume around this trendline, as increased volume would help confirm the strength of any potential breakout