For the second time since September 2025, the Algorand [ALGO] token price has surpassed its 20-week moving average. The first time was a week ago, and this week has started well.
ALGO crypto is up nearly 16% for the day, with a daily trading volume explosion of 204% and an Open Interest surge of 43%. Interest in altcoins over the month has been strong, with the altcoin market cap [including Ethereum] up 33% since the second week of August.
Though the spot CVD was rising to show steady spot demand, the funding rates had fallen into negative territory. This presented a short-term problem for ALGO crypto bulls.
The negative rates suggested the short trade was overcrowded, which pointed to short-term bearish expectations due to overextended market conditions. On the other hand, further price moves higher can liquidate these short sellers, resulting in a squeeze.
Which way is ALGO crypto poised to go in the long term?
A 72% rally in six weeks was a sign of intent, as was the price move back above the 20-week moving average. Yet, the price structure has been bearish since July 2025. The swing structure broke bearishly in late 2025 and has not been flipped since.
A weekly session close above $0.1456 would confirm a bullish swing structure reversal. If the buyers can achieve this, their next price target would be $0.336, the July swing high that is 150% higher than current market prices.
Algorand challenges May highs, but price action resembles a range
The high volumes signal confidence that, if sustained, will make this move viable. However, there was a profit-taking threat to contend with.
The trend on the daily timeframe is bullish. So are the volume indicators and the overbought RSI reading. Yet, if ALGO crypto can not breach the $0.1396 swing point, it would signal a range formation in play.
In that case, instead of a breakout past $0.14 and the weekly swing high of $0.145, a retreat to $0.108 would become the next move to watch.
Final Summary
- Algorand prices rallied 16% in a day, even as Bitcoin faced a correction that pushed its price below $84k on the day.
- The relative ALGO strength was encouraging, but there were two key overhead resistance levels to watch for a breakout to confirm a recovery.
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