Algorand Shows Strong Buy Signals: ALGO Targets $0.20 Rebound

Algorand (ALGO) appears to be poised for a potential price rebound as several bullish indicators emerge. With critical support established near $0.152 and a recovering RSI from oversold territory, traders are optimistic about a target of $0.20. The growing number of long positions on exchanges like Binance also reflects increased confidence in ALGO's ability to move higher.

Key Takeaways

Multiple indicators are signaling a bullish trend as ALGO maintains key support at around $0.152, with the RSI showing signs of recovery from oversold levels.
Nearly 58% of traders on Binance currently hold long positions, indicating a growing belief that ALGO will reclaim $0.165 and potentially target $0.20.
The TD Sequential indicator has recorded two consecutive buy signals on the daily chart for Algorand [ALGO], raising hopes for a rebound after a significant drop.
The Spot Taker cumulative volume delta (CVD) indicates buy-side dominance, suggesting that buyers are regaining control in the short term.
At the time of writing, ALGO is trading close to $0.16, having defended the lower boundary of its descending channel, signaling active demand at this price point.
Historically, similar dual buy confirmations have often preceded relief rallies, indicating a possible shift in market sentiment.
As buyer momentum builds, the price could steer towards the $0.20 resistance level, where market recovery could gain further validation.

Will Algorand Regain Strength?

Algorand continues to navigate a downward channel that has characterized its price movements since July. Recently, the token saw a rebound from the lower edge around $0.152, where buying interest has frequently surfaced. The Relative Strength Index (RSI) hovered around 35, showcasing oversold conditions that often lead to short-term recovery rallies. A successful close above $0.165 could signal a potential shift in market momentum towards the $0.20 mark. However, a fall below the $0.152 support level could expose ALGO to further declines. Traders are keenly observing this critical zone as the TD Sequential buy signal and RSI recovery align at this technical juncture.

Algorand Chart Analysis
Source: TradingView

Increasing Trader Optimism

Data from Binance indicates that 57.99% of traders are currently in long positions, contrasting with 42.01% holding short positions, leading to a long-to-short ratio of 1.38. This rise illustrates a renewed sense of optimism and a stronger appetite for leveraged bullish exposure. The timing coincides with the TD Sequential buy setup, which underscores traders’ expectations of a price rebound. However, as long positions accumulate, the risk of volatility grows if prices encounter resistance at higher levels. Despite this risk, the combination of increasing long positions and a slowly rising RSI suggests a positive sentiment that could enhance upward momentum if buying pressure continues persistently.

Algorand Long/Short Ratio
Source: CoinGlass

What Will Determine Algorand’s Next Breakout?

The liquidation map on Binance has revealed concentrated clusters between $0.155 and $0.165, marking a significant liquidity zone where many leveraged positions are held. This area acts as a critical pressure point that could lead to either a sharp breakout or a significant pullback, depending on market direction. If Algorand manages to break above $0.165, the thinner liquidity above could facilitate a rapid ascent towards $0.20. Conversely, a drop below $0.155 could lead to cascading liquidations, pulling the price down to around $0.145. Thus, this narrow trading range presents a battleground that will greatly influence Algorand’s short-term volatility and future trends.

Algorand Liquidation Map
Source: CoinGlass

Can Bullish Signals Lead to a Sustained Rally?

Algorand’s outlook has shown signs of improvement, bolstered by the TD Sequential's double buy signal, the growing long exposure, and RSI recovery—all pointing towards a potential momentum reversal. Maintaining support above $0.152 and successfully clearing $0.165 would solidify this bullish scenario and potentially open pathways toward $0.20. Nevertheless, the close proximity of liquidation zones and increasing leverage introduces some risks if buying momentum weakens. Continuous accumulation in both Spot and Futures markets will be crucial for ALGO to turn this momentum into a broader recovery phase.