Algorand [ALGO] was touted as a promising real-world asset altcoin that could pump this week. Popular crypto analyst Ali Martinez drew attention to the bullish chances of ALGO.
The altcoin was still stuck below the $0.14 local resistance level. Describing it as a channel, the analyst wrote that a daily session close above this level would confirm a breakout toward $0.19.
Assessing Algorand’s bullish chances
In the past 24 hours, Algorand has rallied 10.1%, with a 41.6% increase in daily trading volume. A handful of other altcoins have made similar gains following the Bitcoin bounce toward $84k on Sunday, the 11th of October.
The market-wide bounce spurred $191 million in liquidations in a day, with $141 million of them being short. Algorand’s share was $141.3k in short liquidations compared to just $19.8k in long liquidations.
Since posting the low of $0.0757 in late July, ALGO bulls have driven a sizeable rally that challenged the $0.1396 swing high from May. A post-quantum roadmap and increased network activity helped fuel bullish short-term sentiment.
A brief price move above it was beaten back, and the altcoin fell to $0.115, but has since bounced to $0.126. While this appeared to be a good outcome in the short term, the daily swing structure was still bearish.
A daily session close above $0.14, as the analyst pointed out, would be a solid start to a trend reversal. The next swing high on the daily timeframe was at $0.19, explaining ALGO’s next target.
Traders’ call to action – Wait for confirmation to buy
Traders can choose a more aggressive approach and buy ALGO soon, or wait for a daily structure break and a subsequent retracement before buying. The latter approach would involve waiting for a confirmation.
The 4-hour structure was firmly bullish. The 78.6% Fibonacci retracement level was tested and has yielded a bullish response. A move above $0.1396 would be the bullish continuation buyers could wait for.
Final Summary
Algorand may be one RWA altcoin that is to have an outstanding week on the price charts.
The proximity to the $0.1396 swing high, which is key for both a long-term trend reversal and a short-term bullish trend continuation, explains these bullish expectations.
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