Algorand (ALGO) has been struggling to gain momentum, hovering around the $0.23 support level, yet a potential breakout is expected in mid-September.
Technical Indicators and Analysis
Currently, ALGO is testing the $0.23 support level, with resistance near $0.25 and $0.29. The RSI value of 43 indicates neutral-weak momentum. Short-term weakness is visible on the 20-day EMA at 0.252, while the token is below its 50-day and 100-day EMAs at $0.248 and $0.238 respectively, indicating a weak market mood.
XBTO Partnership Strengthens Fundamentals
The partnership with XBTO has improved liquidity and stabilized the order book. This collaboration enhances the prospects of attracting institutional investors, optimizing custody and treasury functions via the transfer of USDC stablecoins which supports a robust narrative for long-term institutional use of Algorand, capable of processing over 10,000 transactions simultaneously.
Market Sentiment and Key Price Levels
Market sentiment remains cautious, exacerbated by adverse netflows. The $0.23 support level is critical for ALGO bulls. If the price stays above this level, potential breakout to $0.25 then to retests at $0.27 and $0.29 could follow. Bears are watching for further selling pressure if $0.23 is breached, which may lead to deeper support levels of $0.21 and $0.19.
Algorand is at a pivotal point, with a breakout window approaching in mid-September. If ALGO can maintain support at $0.23 and push above $0.25, an upward trend may follow. Given the current trends, ALGO has the potential to reach $0.34 by the end of 2025, and $0.75 by 2030 in a long-term scenario.
