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- ALGO could post a potential gain of 25% over the next few weeks.
- The altcoin has had impressive development activity since the beginning of the year.
Algorand [ALGO] The recent rally has not yet regained the pre-FTX levels of $0.4500, but it may try to create such a party soon. The asset fell to a low of $0.1616, shedding more than 60% of its value. But it may approach pre-FTX levels in the next few weeks.
The latest US Consumer Price Index (CPI) and Producer Price Index (PPI) data indicated that inflation is declining, which could prompt the Federal Reserve to adopt a dovish approach in its next release scheduled for late January. If that happens, it would positively launch the markets, including the crypto sector.
Such a pessimistic approach could see ALGO bulls targeting this resistance level.
Read Algorand [ALGO] predict the price 2023-24
$0.3034: Can the bulls target it?
The new year rally saw ALGO rise from $0.1616 to $0.2407, bringing it close to the December high. Although the rally provided gains of around 50%, it was nowhere near pre-FTX levels.
At the time of publication, the Relative Strength Index (RSI) was bullish at 63, while Balance Volume (OBV) was hovering above 1.84B. The aforementioned conditions could push the bulls to target the $0.3034 resistance, especially if BTC holds the 22K region and the Fed’s dovish announcement.
This will be a potential profit of 25% over the next few weeks. But the bulls need to overcome the hurdle around $0.2612-$0.2678 and the bearish order block at $0.2407.
However, a break below the $0.2081-$0.1980 range support would invalidate the bullish bias above.
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ALGO development activity increased, but OI fluctuated
According to Santiment, development activity on the Algorand ecosystem has increased since the beginning of the year. This could increase investor confidence in its native token, ALGO, and increase its price in the long run.
Additionally, ALGO has seen spikes in overall NFT trading volume, which could increase active users and value for investors.
Despite the price increase, ALGO’s open interest (OI) has fluctuated over the past three weeks. At press time, OI is on the way to recovery and could add to ALGO’s bullish trend if the trend continues over the next few days.