- ALGO plunged beneath the range from May, but bulls recovered quickly.
- Algorand might explore the green region within the coming few days.
Bitcoin exhibited a lower volatility phase on its price charts following the FTX crisis. Sellers seem dominant from a long-term standpoint though bulls might force an upside move. And that manifested for Algorand.
Algorand bulls reversed a swift decline below a 6-month range low. Moreover, flipping the value area at $0.3 to a demand region might trigger another 8% – 10% upward move.
Bulls Force Recoveries
Algorand has traded inside a range on its price chats since May. The latest selling wave pushed the alternative token lower. Nevertheless, the 4hr chart highlighted some bullish presence within the past few days. The CMF (Chaikin Money Flow) has remained beyond the zero mark, though yet to soar beyond +0.05, showing a substantial cash flow into the marketplace.
Meanwhile, the last few days saw the A/D (Accumulation/Distribution) indicator making a U-turn. The latest buying wave counteracted the entire selling pressure since October 7. Also, the RSI swayed back beyond the 50-neutral, confirming heightened bullish momentum.
Bulls seem to have won the challenge, repelling bearish tendencies. For instance, they attacked the bearish 4hr order block near $0.3. Moving beyond this zone could see the area flipping to an optimistic breaker. Notable resistances stand at $0.33 & $0.35.
Increase Social Volume Since October Regardless of the Price Move
Social volume has remained elevated since October’s early sessions. Nevertheless, the social dominance index didn’t follow suit. That indicated that ALGO noted similar social media cryptocurrency posts as in October.
The asset’s funding rate remained positive on Huobi and Binance within the last few days. Meantime, the Short/Long ratio indicated that bears had a brief supremacy over the past day. Moreover, shorts accounted for 50.8% of futures positions.
Retesting and flipping $0.3 into a bullish breaker might present a lower chart ‘buy’ opportunity, targeting profit-taking levels at $0.33 & $0.35. Moreover, ALGO’s deal with FIFA can mean upsides as the 2022 World Cup starts on November 20.
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