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- ALGO could experience a potential gain of 25% in the coming weeks.
- The altcoin recorded impressive development activity since the beginning of the year.
Algorand’s [ALGO] The recent rally has yet to recapture pre-FTX levels of $0.4500, but it could try soon. The asset fell to a low of $0.1616, losing more than 60% of its value. But it could approach pre-FTX levels in the coming weeks.
Recent data from the US Consumer Price Index (CPI) and Producer Price Index (PPI) suggested easing inflation that could tip the Federal Reserve to take a dovish approach in its next expected release. by the end of January. If that happens, it will positively trigger the markets, including the crypto sector.
Such a dovish approach could see ALGO bulls target this resistance level.
Read Algorand [ALGO] price prediction 2023-24
The $0.3034: Can the bulls target it?
The New Year rally sent ALGO higher from $0.1616 to $0.2407, nearing the December high. Although the rally offered gains of around 50%, it was nowhere near pre-FTX levels.
At press time, the Relative Strength Index (RSI) was bullish at 63, while On-Balance Volume (OBV) held above the 1.84B level. The above conditions could make the bulls target the $0.3034 resistance level, especially if BTC holds the 22K zone and the Fed announcement is dovish.
That would be a potential gain of 25% in the coming weeks. But the bulls need to clear the hurdle around $0.2612 – $0.2678 and the bearish order block at $0.2407.
However, a break below the support of the $0.2081 – $0.1980 range would invalidate the previous bullish bias.
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ALGO development activity increased, but OI fluctuated
According to Santiment, development activity in the Algorand ecosystem has increased since the beginning of the year. This could increase investor confidence in its native ALGO token and increase its price in the long run.
Additionally, ALGO witnessed spikes in total NFT trading volume, which could further boost its active users and investor value.
Despite the price increase, ALGO’s open interest (OI) rates fluctuated over the past three weeks. At press time, the OI was on a recovery path and could fuel ALGO’s uptrend momentum if the trend continues over the next few days.