Algorand (ALGO) On-Chain Metrics Hint at Upside Explosion

  • Algorand price triggered a 26% recovery move after setting a steady base near $0.675.
  • On-chain metrics indicate a smooth road for bulls towards the $1.05 high, suggesting another leg-up for the altcoin.
  • A daily candle close under $0.675 will nullify ALGO’s bullish theory.

Algorand (ALGO) displays resilience following a massive upside rally last week. This action might be vital in catalyzing another upward move, the alt recovering its losses. Meanwhile, the upward narrative emerged as the overall crypto market recorded upticks over the past sessions. Let’s find out what ALGO has for its enthusiasts.

ALGO Awaits Upside Catalyst

Algorand saw its price rebounding from a steady support floor around $0.675, resulting in a 26% surge towards the weekly resistance zone near $0.817. The move remained significant since the alt formed a 24hr candle close beyond the crucial obstacle at $0.817.

If bulls keep ALGO beyond this obstacle, they will increase the probability of extending this leg-up to higher zones. A likely case might witness Algorand slightly dipping beneath the mentioned support before catalyzing another upward move.

Market players can expect upsurges to $1.04 despite minor pullbacks. However, the token will likely form a local higher in this area. That would translate to a 34% total surge from the levels of $0.776.

Supporting the upswings for ALGO is the GIOM model by IntoTheBlock, which indicated clear skies for bulls. The index shows that Algorand’s next meaningful obstacle sits at $0.952 – $1.11, where nearly 712,000 addresses that bought 895 million Algorand tokens stay out of money. That means a potential move towards this cluster will encounter selling momentum from individuals attempting to break even.

Though low, ALGO’s transactions worth over $100,000 surged to 71 from 52 within the previous month. The 36% surge in transfers, which acts as net worth investors’ proxy, indicates that whales show interest in the altcoin at its current levels.

Meanwhile, a 24hr candlestick close beneath $0.675 will print a lower low, annulling ALGO’s upside narrative. That might see the token crashing towards $0.618. Buyers can regroup at this level for another rally attempt.