Algorand (ALGO) shows potential bullish breakout signal, with analysts projecting major price movements fueled by US crypto policy developments.
Algorand ALGO $0.18 24h volatility: 0.6% Market cap: $1.54 B Vol. 24h: $73.38 M is currently trading at $0.384, gaining 2.3% over the past 24 hours. The recent ALGO price chart patterns suggest a decisive move may be on the horizon for the token. Crypto analyst Ali Martinez noted the formation of a symmetrical triangle on the daily chart, which typically signals an imminent breakout. Martinez projected that ALGO could see a major 57% price swing depending on the breakout direction.
This comes in the wake of former President Donald Trump’s recent executive order advocating for the advancement of cryptocurrencies in the U.S. Trump’s past push at prioritizing “Made in USA” digital assets fuels speculation that blockchain networks such as Algorand could benefit from the policy push.
Notably, following Trump’s confirmed re-election win in November 2024, Algorand’s total value locked (TVL) surged by 200% to exceed $200 million. At the same time, ALGO price quadrupled to $0.51 within a month.
Currently, ALGO’s TVL stands at $147 million, as per the data by DeFiLlama. This notable growth has caught the attention of industry analysts, including crypto expert Merlijn, who remarked on X:
“ALGO + Trump = A recipe for explosive growth!” He added that the token is one of the top contenders for a “parabolic move.”
ALGO currently holds a market cap of $3.22 billion, maintaining its position as the 44th largest cryptocurrency, according to CoinMarketCap.
A Potential Breakout Ahead?
On the daily chart, the Bollinger Bands are narrowing, suggesting reduced price volatility and hinting at an upcoming breakout. With ALGO’s price hovering near the lower band, key support stands around $0.35. On the other hand, resistance lies near $0.42, aligned with the 0.786 Fibonacci level.
If ALGO price holds the support and the trading volume sustains, traders may see an upward rally.
Meanwhile, the 14-day RSI reads 48, slightly below the neutral 50, signaling mild bearish momentum but no clear oversold condition, meaning further downside is limited without fresh selling pressure.
The Fibonacci extension also reveals a crucial resistance level at $0.52. A breach of these points could fuel sustained upward momentum, possibly taking ALGO to its next major target at $0.64.
However, it is important to note that the downside risks linger if the token fails to hold the support, with potential declines to $0.32.
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