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Algorand’s (ALGO) price action for most of 2023 has been bearish. However, bullish signs in the market have helped the altcoin mount a decent comeback.
After hitting a year-low of $0.088 in late October, ALGO has produced gains of over 2x, currently trading at $0.199.
Can ALGO buyers sustain the momentum?
The break of a major resistance level at $0.15 in December has provided a strong base for ALGO to finish 2023 on good footing. With the next important price level at $0.173 now acting as support, buyers can expect to register good gains in the medium to long term.
A look at the daily timeframe showed the possibility of a 20% profit target from the current price level of $0.199. This could take ALGO to another critical price point at $0.24.
Medium to long-term buyers can bid long positions between $0.17 (near-term support) to $0.199 (current market price). Take-profit levels can be achieved at $0.21 to $0.24.
A daily candle close below $0.173 will invalidate the bullish thesis, although the next support at $0.15 remains critical for buyers.
On-chart indicators continue to flash bullish signals
Gauging market interest in ALGO’s bullish strides showed the strong possibility of continuing the upward movement. The Relative Strength Index (RSI) remained firmly above the neutral 50, even though it dipped out of the overbought zone.
Similarly, the Chaikin Money Flow (CMF) was strongly positive with a reading of +0.23. This highlighted strong capital inflows into ALGO by medium to long-term holders.
As such, ALGO holders can expect further price gains, if the overall crypto market sustains its bullish outlook.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
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