Algorand spikes 17% – Will resistance cap ALGO’s upside at $0.11?

Algorand [ALGO] has continued to uphold a strong upward trend in the last four days. This momentum is still in place, as it has risen by 17% in the last 24 hours.

The steady surge indicates a constant buying pattern and not a one-time spike. Interestingly, most on-chain metrics also spark bullish signals. Algorand’s whale activity and derivative metrics are in favor of the market bulls.

A key supply zone stands in the way

ALGO has witnessed an aggressive bullish run over the last four days. The token has maintained its strong momentum with a 17% increase over the last 24 hours.

Despite the ongoing rally, a nearby supply zone could slow things down. At the time of writing, ALGO was testing a critical supply zone around $0.1133. This zone represents a pocket of potential selling pressure where previous moves may have stalled.

A break past the supply zone will see the token prices rally to test the next resistance level at around $0.15. The likelihood of the breakout coming into play is close to certain, more so given the current aggressive push from the token’s bulls.

On-chain metrics point to a potential breakout

Most of Algorand’s on-chain metrics were sending bullish signals at the time of writing. The network’s whales are making aggressive moves by accumulating more orders at the current trading price.

This suggests confidence among larger players, even as price trades near a point of supply.

That’s not all; most derivative data also plays along with the trend. Binance has the highest Open Interest at 14.75M, as Bybit follows suit with a 66.66% increase in volume in the last 24 hours.

KuCoin deviated from the rest with a sharp decline in volume but an increase in Open Interest.

On sentiment, Binance has a higher ratio of longs to shorts at 1.3923, but OKX seemed to be bearish at 0.65. It is interesting to note that Binance has a high ratio of longs by both accounts and positions among their top traders.

Liquidation levels also indicate a squeeze, as shorts make up 80.29% of 765.13K out of 952.39K in 24 hours. Whether this momentum holds depends on incoming market conditions.

Can ALGO reach $0.15?

ALGO setup is constructive, and its market structure is showing resilience. The token price momentum remains intact, with most on-chain metrics sparking optimistic signals in favor of the market bulls.

The next move now depends on how the price reacts at the supply zone.

A break past the supply zone could place the $0.15 resistance level into the bull’s radar. However, a failure could slow down the current momentum and send the token price action into a consolidation phase.

Final Summary

• ALGO gained 17% as bullish momentum extended its four-day rally.
• Whale accumulation and strong structure support a potential move toward $0.15.