Key takeaways
What do Algorand’s TD Sequential and RSI suggest about its next step?
Both indicators point to potential bullish relief as ALGO holds key support near $0.152 with the RSI rebounding from oversold territory.
How do traders position themselves for a possible breakout?
Long accounts dominate at nearly 58% on Binance, reflecting growing optimism that ALGO could reclaim $0.165 and target $0.20.
The TD Sequential Indicator printed two consecutive buy signals on Algorand (ALGO) daily chart, fueling optimism about a rebound after a sharp decline.
The CVD Spot Taker shows buy-side dominance, implying that buyers are regaining control in the short term.
Trading near $0.16 at press time, ALGO defended the lower edge of its descending channel, showing that demand remains active at this level.
Historically, similar double confirmations have coincided with local troughs, often preceding relief rallies.
As buyer strength increases, momentum could build towards the $0.20 resistance zone, where broader validation of the recovery could begin to unfold.
Can Algorand regain strength?
Algorand has continued to trade within a bearish channel that has defined its structure since July. Recently, the token has rebounded from the lower boundary near $0.152, where buying demand has consistently emerged.
The RSI was hovering near 35, reflecting the oversold conditions that often precede short-term relief rallies. The technical landscape suggests that a close above $0.165 could confirm a momentum shift towards $0.20.
However, losing the $0.152 support would expose the token to further decline. Traders are closely watching this area as the TD Sequential buy signal and RSI rally converge around this crucial technical point.
Source: TradingView
Growing optimism among traders
Binance data shows that 57.99% of traders held long positions at press time, compared to 42.01% short positions, bringing the long/short ratio to 1.38.
This jump highlights renewed optimism and a growing appetite for leveraged bullish exposure. The timing aligns with the TD sequential buy setup, reinforcing that traders are expecting a rebound.
However, as long positions grow, the risk of volatility increases if prices are rejected at higher resistance zones.
Nevertheless, the correlation between the growth of long positions and the gradual rise in the RSI suggests an improvement in sentiment which could amplify the bullish momentum if buying pressure continues over the coming sessions.
Source: CoinGlass
THIS will decide the next Algorand breakout
The liquidation map on Binance revealed dense clusters between $0.155 and $0.165, marking a key liquidity pocket where leveraged positions are concentrated.
This area acts as a pressure point that could trigger either a sharp breakout or a sharp pullback, depending on the direction.
If Algorand rises above $0.165, the low liquidity above could fuel a rapid rise towards $0.20. Conversely, a decline below $0.155 could trigger cascading liquidations, driving the price towards $0.145.
Therefore, this narrow corridor represents a battleground that will likely dictate Algorand’s near-term volatility and prospects for trend continuation.
Source: CoinGlass
Can bullish signals translate into…?
Algorand’s outlook has improved with the TD sequential double buy signal, increasing long exposure, and RSI recovery all hinting at the potential for a trend reversal.
Maintaining support above $0.152 while breaking through $0.165 would confirm this bullish setup and possibly open the door to $0.20.
However, narrow liquidation zones and increasing leverage introduce risk if buying pressure weakens.
Sustained accumulation in the spot and futures markets will be key for ALGO to turn this rebound signal into a broader recovery phase.
