- Algorand price is range bound between the $0.341 and $0.508 barriers.
- A bounce off the $0.352 to $0.370 demand zone is likely to trigger a 37% upswing.
- If ALGO produces a four-hour candlestick close below $0.323, it will invalidate the bullish thesis.
Algorand price is cycling between support and resistance in a range that has kept it under wraps since the May 12 crash. Due to the possibility of a relief rally for Bitcoin price influencing the whole crypto market, ALGO also has the potential for a breakout and upswing scenario evolving that could result in sizable gains.
Algorand price readies for a breakout
Algorand price created a swing low at $0.341 on May 12 after crashing nearly 60%. This low constituted a turning point from which ALGO quickly recovered 49% of its losses and rallied to set a swing high at $0.508.
Since then, Algorand price has produced lower lows and recently flipped the 50% retracement level at $0.424. As ALGO consolidates above the $0.352 to $0.370 demand zone, a bounce off it could be enough to trigger a run-up. In some cases, a sweep of the range low could be the trigger for the bounce.
Regardless of where ALGO tags, the subsequent uptrend looks promising. Algorand price may not just stop at $0.424 but could make its way to the range high at $0.508. This move would constitute a 40% ascent from the current position.
ALGO/USDT 4-hour chart
Investors also need to keep a close eye on the long-term outlook. A breakdown of the $0.323 barrier will create a lower low and suggest that the macro bearish outlook could continue for ALGO.
In such a case, Algorand price could crash 20% to revisit the $0.262 support level.