Altcoin Market Watch: Algorand Shows Promise

Algorand’s (ALGO) price action is showing signs of resilience this week, outperforming the broader crypto market according to crypto analyst Jonathan Morgan. Algorand’s price rebounded sharply, signaling a potential bullish trend evoking growing interest in altcoins.

The #altcoin market is green for the week – outperforming the total crypto market cap

Additionally, many altcoins look like $ALGO’s chart:
⬨ Recovered all of yesterday’s losses.
⬨ Yesterday’s volume was at/near multi-month highs.
⬨ Price moved past yesterday’s open. pic.twitter.com/yTXXZoNFwr

— Jonathan Morgan (@jonmorgan_HODL) August 6, 2024

Algorand’s recent price, of late, had recovered from its previous losses. As of press time, the price of ALGO has risen by 3% over the last 24 hours, reaching $0.1166, with a trading volume of $39,981,367. Currently ranked #65 on CoinMarketCap, Algorand boasts a market cap of $950,283,215 and a circulating supply of 8.2 billion ALGO coins.

This rebound is notable, considering the coin’s earlier bearish sentiment. Due to market factors and profit-taking, it opened at approximately $0.1132 and dipped to a low of $0.109. The recovery signals increased buying interest and resilience, marking a potential bullish reversal.

Source: CoinMarketCap

Based on TradingView data, the technical analysis of Algorand (ALGO) against the U.S. Dollar on the Bitstamp exchange indicates mixed sentiments. From April to August, Algorand experienced a downward trend. However, there was a slight recovery attempt in early August.

The Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover, with the MACD line crossing below the signal line, suggesting ongoing bearish momentum. The negative values in the histogram further support this sentiment.

Source: TradingView

However, the Relative Strength Index (RSI) at 31.18 indicates that Algorand is in oversold territory, suggesting a potential price reversal or short-term bounce. The low trading volume of 996 units aligns with the lower part of the price movement, indicating reduced activity.

While the technical indicators highlight potential buying pressure due to oversold conditions, the prevailing bearish trend may persist without a significant market catalyst.

Source