- Algorand price rose nearly 9% to above $0.12.
- The token posted a sharp rebound from weekly lows amid a fresh daily volume spike.
- Buyers could target $0.20 next, but profit-taking is likely.
Algorand is among the altcoins to post slight gains on Monday as top coins faced downward pressure.
The ALGO token, which touched lows of $.011 on Sunday, jumped to near $0.13 amid a notable volume-driven recovery.
Bulls are likely to fancy continuation from their weekly trough.
As data from CoinMarketCap shows, ALGO has climbed by over 9% in the past 24 hours, erasing much of the prior week’s losses. Daily volume was up 170% to over $69 million.
However, while buyers have pushed prices above $0.12, they remain well off monthly highs near $0.15.
Sentiment is capped within the confines of what is happening around the broader market.
Crypto analysts at QCP Group shared insights on how investors currently view the ecosystem.
“The pressure looks macro-led rather than crypto-native, with tariff rhetoric, US fiscal brinkmanship and renewed nerves around potential US-Japan action to steady the yen stacking into a familiar cocktail of uncertainty and de-risking,” the analysts noted.
According to the platform, the week is laden with key events to watch.
Apart from the looming US government shutdown, other factors are major tech earnings and the Fed decision expected this midweek.
They believe volatility will likely stay sticky and broader price action “choppy until macro clarity improves.”
Algorand price gains amid key developments
There’s no momentum building across the broader cryptocurrency market, with Bitcoin’s struggle below $90,000 key to the downbeat sentiment.
But recent developments seem to have pointed buyers towards the layer-1 token ALGO.
Increased transaction throughput, developer adoption, and network activities, like Algorand’s Verifiable Random Function, all give bulls an upper hand.
VRF offers a cryptographic feature enabling secure, tamper-proof randomness for decentralized applications like gaming, lotteries, and NFTs.
The team recently announced a major impact of VRF in a post on X.
ALGO price forecast
Technical indicators, such as a Relative Strength Index (RSI) upsloping from oversold conditions, suggest a bullish rebound is likely.
The Moving Average Convergence Divergence (MACD) indicator shows bears remain in sight.
However, the histogram is signalling weakening bearish momentum, and also shows a potential bullish crossover on the daily chart.
The 50-day exponential moving average sits at $0.129 and is the first resistance level.
If prices break above $0.15, continuation above $0.20 could open up a path to yearly highs of $0.40.
Short-term, the outlook might include pullbacks amid profit-taking. The zone around $0.11 to $0.10 is critical to the bulls’ ambition.
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