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Algorand's ALGO Token: 54% Surge Imminent if Resistance Flips

Coin WorldFriday, Jan 31, 2025 9:28 pm ET

1min read

Algorand's ALGO Token Could Surge by 54% if Certain Conditions Are Met

Algorand's ALGO token has been under the radar of investors and traders alike, with its recent performance sparking interest in its potential for growth. In the past 24 hours, ALGO has seen a significant price rally, gaining 26% and reaching a trading volume of $525.23 million, a 440% increase from the previous day. At the time of this report, ALGO was trading at $0.034.

Analysts have been studying the market trends and have identified certain conditions that could lead to a further rally in ALGO's price. According to AMBCrypto's analysis, there is room for more growth in the market, but certain hindrances could delay ALGO's potential rally.

ALGO recently broke out of a descending channel formed by lower highs and lows within defined support and resistance. Such breakouts typically indicate a rally move. This channel had been forming since the 4th of December 2024, suggesting likely accumulation of ALGO at a lower level.

Currently, ALGO is retesting the resistance level of this channel. If this level flips to support, ALGO could rally by 54.79% to $0.059, last reached on the 5th of December 2024. This would be a significant surge in the token's price, indicating a strong bullish trend.

While bullish sentiment remains, ALGO could potentially struggle as certain cohorts are selling their assets. JASMY has recorded weekly profit-taking activity for the first time since September 2024, with $1.89 million worth of the asset sold. This was determined through ALGO's Exchange Netflow on Coinglass, which turned positive in the past week.

A positive Netflow indicates traders are selling, while a negative Netflow suggests bullish sentiment. The Funding Rate, which measures the premium paid to maintain positions and keep the difference between Spot and Futures prices low, shows that short traders are in control. With a Funding Rate of -0.0110%, it suggests the price could fall as short contracts are heavily funded, implying confidence among these short traders.

These negative metrics have contributed to the

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