Algorand price to revisit $1 if ALGO bulls can stay above this level

Algorand price is at an inflection point in its journey as it hovers above a weekly support level. A breakdown of this barrier could lead to a retracement before the bullish scenario kicks in, but a bounce could prematurely trigger a similar outlook.

Algorand price at decisive moment

Algorand price is at a confusing stage in its journey to $1 as it hovers above the $0.818 weekly support level. Since ALGO collected liquidity below the January 22 swing low at $0.796, there is a good chance the $0.818 barrier will hold.

A bounce off the said level will be the key to triggering a move to the $1 psychological level and the barriers surrounding it. From the current position, this move would constitute a 30% gain and is likely where the upside is capped for ALGO.

An alternative scenario would include the Algorand price heading lower to retest the $0.675 support level and collect liquidity resting below it. This move would remove any risk of a further downside and would be the ideal scenario to retest $1. The outlook would constitute a total gain of 63% from the $0.675 foothold.

ALGO/USDT 1-day chart

Backing this bullish outlook to $1 is Algorand price IntoTheBlock’s Global In/Out of the Money (GIOM) model. This index reveals that the immediate hurdle is around $1.09, where roughly 627,570 addresses that purchased 2.7 billion ALGO tokens are underwater. 
Therefore, a move into this area is likely to be met with selling pressure from holders trying to break even.

ALGO GIOM

Further supporting the bullish narrative for ALGO is the recent spike in the number of large transactions worth $100,000 or more. This index serves as a proxy to high networth investors’ investment. The number of such transfers increased by ten over the past month, indicating a slow uptick in investor interest in ALGO at the current price levels.

ALGO large transactions

On the other hand, if Algorand price produces a daily candlestick close below $0.675, it will create a lower low and invalidate the bullish thesis. This development could see ALGO head lower to find stable support levels.