- Algorand crypto surged over 10% in the last 24 hours as of press time and now battles to break the $0.38 level.
- If ALGO sustains to stay above $0.38, it could break out of the bullish pennant pattern and surge past $0.60.
Algorand [ALGO], which ranked 18th among the Top Made in USA Coins by market cap, continues to gain traction.
Analysis of ALGO’s active addresses showed 75.14% of addresses were ‘At The Money,’ highlighting $0.38 as pivotal. This percentage reflects the bulk of ALGO holders whose positions will gain or lose value if ALGO moves away from this level.
Specifically, 17.59% of addresses were ‘In The Money,’ profiting at the current price, while 7.26% are ‘Out of The Money,’ facing losses. This distribution indicates a substantial concentration around the current price, suggesting it was a crucial support or resistance zone.
Source: IntoTheBlock
If ALGO sustains above $0.38, it could solidify this level as support, potentially leading to a price increase as confidence among holders strengthens. Conversely, dropping below this price might trigger a sell-off.
The high percentage of addresses at this breakpoint suggests volatility might increase, offering both risk and opportunity for traders.
In the longer term, maintaining above this key price level could encourage more buying, driving ALGO’s recovery forward.
Price consolidating in a bullish pennant pattern
ALGO rose to $0.3808 with a daily gain of 10% but saw a weekly drop of 9.17%, according to CoinMarketCap. ALGO is contesting the $0.38 level, a crucial juncture that could define its short-term trajectory.
If it can sustain above this level, ALGO might break out from its bullish pennant pattern, aiming for higher resistance near $0.60.
The MACD indicator showed a convergence near zero, suggesting that momentum may be shifting towards the positive. The ADX, at a low value of 11, indicated weak trend strength, meaning ALGO’s price might not yet be sustainable for a significant rally or fall.
Source: TradingView
Conversely, failure to maintain the $0.38 level could see ALGO retesting lower supports at around $0.31, where previous lows might provide some stability.
This uncertain balance makes the level critical for determining future movements, suggesting that investors should watch closely for either a confirmed breakout or a potential decline.
Concerns over Algorand’s roadmap
Algorand’s roadmap aims to enhance decentralization with a shift to a P2P Gossip Network, addressing past centralization concerns.
The focus is on implementing post-quantum security to safeguard against emerging quantum computing threats. There are plans to integrate quantum-resistant algorithms.
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Developers anticipate the launch of AlgoKit 3.0, promising broader programming language support to foster ecosystem growth.
However, uncertainties persist about how effectively these upgrades will mitigate vulnerabilities, especially with the rapid evolution of quantum technology.
Algorand’s commitment to security is clear through these strategic moves, but the success of these implementations remains to be seen.
