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Algorand (ALGO) Breakout Could Spark 60% Price Surge Amid Trump Speculation

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Victor Olanrewaju
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Key Takeaways

  • Algorand price is on the brink of breaking above the upper trendline of a symmetrical triangle.
  • Factors like the potential removal of crypto tax gains on U.S.-issued cryptos could validate it.
  • The BBP, RSI, and MACD indicate that ALGO’s price could climb to $0.62.

Algorand’s (ALGO) price climbed by 10% in the last 24 hours, making it one of the top-performing cryptos out of the top 100.

However, the rally may not stop at its rise to $0.39. According to CCN’s analysis, ALGO is on the brink of breaking out of a symmetrical triangle.

Beyond that, speculation continues to grow that Algorand could benefit from Donald Trump’s anticipated crypto-friendly policies as his inauguration approaches. But the main question is: How high can ALGO’s price climb?

Key Factors That Could Impact the Algorand Price

Based on the 4-hour chart, Algorand’s price has traded within a symmetrical triangle since it hit $0.58 on Dec. 3, 2024. A symmetrical triangle appears when two trendlines with equal slopes converge toward a single point.

It signifies a consolidation phase, where price movement narrows before a breakout or breakdown. Typically, a breakdown below the lower trendline indicates the beginning of a new bearish trend. On the other hand, a breakout above the upper trendline marks the start of a bullish trend.

As seen below, ALGO’s price is flirting with the upper trendline. This implies that the price is likely to rise above the triangle pattern.

However, to validate this thesis, ALGO must defend the support at $0.34 and breach the resistance at $0.43.

In addition, the BBP has risen into the positive region, indicating that buyers (bulls) currently hold the upper hand. This also implies that prices may continue to rise.

Algorand price analysis target breakout
ALGO/USDT 4-Hour Chart | Credit: TradingView 

If the BBP reading were negative, it would have indicated bearish dominance, suggesting a potential price decline.

Beyond the technical outlook, there’s growing speculation that Donald Trump’s inauguration on January 20 could positively impact ALGO.

Reports suggest that the president-elect might eliminate taxes on US-issued cryptocurrencies like ALGO, Ripple (XRP), and Hedera (HBAR), a possibility his son, Eric Trump, mentioned in December.

If that happens, this would ease the regulatory pressure the project has faced for a while. Also, demand for ALGO might increase, possibly validating the bullish bias.

ALGO Price Prediction: Higher Values to Come

Further assessment of the 4-hour chart shows that the Relative Strength Index (RSI) has increased. The RSI measures momentum by examining the size and speed of price changes.

Therefore, the increase in its reading indicates bullish momentum surrounding ALGO. The Money Flow Index (MFI), which measures the buying and selling pressure level, also supports this bias.

Typically, when the MFI decreases, sellers are in control. But since it has significantly jumped, buyers are instrumental in driving Algorand’s price further up.

If these indicators sustained the trend, ALGO could climb to $0.62, representing a 60% price increase. However, should bulls lower their guard, this might not happen.

Algorand price analysis ahead of Trump inauguration
ALGO/USDT 4-Hour Chart | Credit: TradingView 

Instead, the altcoin might drop below the 0.236 Fibonacci retracement level and slide to $0.25. Trump’s speech at his inauguration is another factor that could affect ALGO’s price action.

If the US president-elect fails to mention crypto-related policies, ALGO might not experience a surge in demand, which could validate the downturn.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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