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- From November 2024 to April 2025, Algorand’s price action formed a bull flag pattern, a signal for upward continuation.
- $ALGO’s reduced volatility, paired with historical patterns of major rallies after stabilization, points to a likely increase in price action.
Algorand ($ALGO) recently showed its fast-performance blockchain strength, processing 34,008 transactions in one block in less than three seconds with a 100% success rate. This efficiency record revitalized the attention for $ALGO as it came at the time of bullish technical indications that pointed towards a possible price breakout.
Bull Flag Formation Indicates Breakout Potential For Algorand Price
From November 2024 to April 2025, $ALGO price action displayed a bull flag pattern, which is one of the most popular formations to signal upward continuation. The first part of the pattern displayed a steep price rise, followed by consolidation.
Technical indicators indicated that Algorand price was preparing for a move towards the $0.3000 level, as evidenced by directional indicators on the price chart., as reported previously.
Lower volatility in the consolidation phase indicated that traders were building up $ALGO, which supported the breakout potential. According to TradingView, to support this view, the Relative Strength Index (RSI) on the one-hour chart rose from 37 to 54 before plunging back to 48 at the time of writing. This rise showed increasing momentum, with the RSI crossing the 50 level, a typical sign of bullish sentiment.
Whilst, statistics from $ALGO’s derivatives market supported the optimism. The Long/Short Ratio, examined over a period of four hours, indicated a rising level of longs. The Taker Buy/Sell Volume ratio hit an apex around 1.3, emphasizing traders’ inclination to buy over selling.
Moreover, Algorand’s Long/Short Accounts Ratio was around 2.0, indicating that there were more traders betting on a move up. This information was consistent with the current accumulation phase in the bull flag formation, reinforcing the expectation of a price breakout.
Other Technical Indicators Show Positive Signs
On February 23, 2025, $ALGO’s 30-day volatility was 87.41%, lower than its high of 130.94% on February 4. The volatility low of 84.18% on February 19 indicated that $ALGO was in a stabilization phase. Past price action from 2019 to 2025 showed that $ALGO tended to have major rallies after episodes of contained volatility.
Comparison with previous market cycles showed that Algorand’s significant price rallies, such as those seen from 2020 to mid-2021, coincided with spikes in volatility. The recent volatility drop indicated that traders were positioning, a typical lead to more market activity. If the volatility increases once more, $ALGO may experience renewed price action, which may confirm the bull flag breakout.
Over the last 15 hours, $ALGO’s Cumulative Volume Delta (CVD) and Funding Rates again added to positive market sentiment. The CVD had a net positive delta with a growing number of green bars, indicating continuous buying demand, as mentioned in our previous news article.
At the same time, $ALGO’s Funding Rate was 0.0094, which meant that investors were paying a premium to hold long positions. The convergence of a rising CVD and RSI indicated persistent buying pressure, raising the chances of further upward momentum.