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Will Algorand ($ALGO) surpass the $1 psychological milestone as the recovery run extends for the fourth week?
Algorand is gaining traction in the cryptocurrency market, inching closer to a $3 billion market valuation. After being an underperformer, the optimistic outlook for $ALGO is beginning to take shape under the new Donald Trump administration.
But will the recovery rally in Algorand prices continue after four consecutive positive weeks? Let’s take a closer look.
Algorand Price Analysis
The Algorand price action showcases a bullish breakout of a long-coming resistance trend line in the weekly chart. The current recovery run started with a bullish engulfing candle formed in the early week of November.
This accounted for a 32% surge, creating the first bullish engulfing candle in this recovery rally’s weekly chart. Since then, Algorand’s price action has formed four consecutive bullish candles and has surpassed the $0.35 mark.
Starting from the $0.10 psychological mark, the bull run now accounts for a 225% surge. The breakout rally is challenging the 200-week EMA line, slightly below the 50% Fibonacci level.
Following the bullish crossover of the 100-week EMA line, the upward movement in the 50-week EMA line increases the likelihood of another bullish crossover. With the ongoing recovery, the merged MACD and signal lines have significantly diverged in a bullish alignment, and the positive histograms have surged.
As a result, the technical indicators maintain a positive outlook for the upcoming Algorand price trend. The current rally is testing a long-standing resistance level that has capped the Algorand price since late 2022.
Algorand Price Targets 50% Fibonacci Level Breakout
In addition to the Fibonacci levels, a high-supply resistance zone extending from $0.36 to $0.39 presents the immediate bearish obstacle.
A bullish breakout above this level would signal a change in market character and could propel the price toward the 78.60% Fibonacci level. The key Fibonacci level stands at $1.17, followed by the next price target at $2.37.
On the other hand, if the bullish momentum fails, the price may retest the 100-week EMA at $0.2278, with the next support level at $0.1711.