Algorands price has declined towards the $0.13 level after rejecting the $0.146 resistance level on Wednesday.
The bearish performance comes as Bitcoin, Ether, XRP, and other major cryptocurrencies are undergoing a correction.
Despite the correction, bullish sentiment could see ALGOs price rally higher in the near term.
The technical outlook suggests that ALGO could hit the $0.15 level in the near term.
ALGO slips below $0.14 despite bullish on-chain and derivatives data
Copy link to section
ALGO, the native coin of the Algorand blockchain, has lost 5.3% of its value in the last 24 hours and is now trading at $0.1314 per coin.
The bearish performance comes despite bullish on-chain data.
According to DeFiLlama, Algorands Total Value Locked (TVL) has been steadily rising since mid-December and currently stands at $52.95 million.
The increase in TVL over the past few weeks indicates growing activity and interest in Algorands ecosystem.
This suggests that more users are depositing or using assets on ALGO-based protocols.
Furthermore, CryptoQuants summary data also supports the positive outlook.
According to the summary data, ALGOs spot and futures markets show large whale orders and buy dominance, suggesting that a potential rally could be on the line.
On the derivatives side, Algorands funding rate has flipped positive, supporting a bullish bias.
Coinglasss OI-Weighted Funding Rate data reveals that long traders currently outweigh short traders in the market.
The metric flipped positive earlier this week and now reads 0.0084%, supporting the current bullish outlook.
In the past, when funding rates switched positive, Algorands price experienced a sharp increase.
ALGO could surge to $0.15 despite market correction
Copy link to section
The ALGO/USD 4-hour chart is bearish and efficient as Algorand has lost 5% of its value in the last 24 hours.
ALGOs price broke above the falling wedge pattern on Sunday but has added nearly 15% to its value since then.
However, it failed to top the $0.146 resistance and is now trading at $0.1314 per coin.
With the $0.133 support level and 50-day Exponential Moving Average (EMA) failing, ALGOs price could experience further selling pressure and retest the $0.1241 zone.
The Relative Strength Index (RSI) on the 4-hour chart reads 56, above the neutral level of 50, indicating bullish momentum is gaining traction.
Furthermore, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover and rising green histogram bars above the neutral level.
If the momentum indicators continue with the bullish scenario, ALGO could extend the rally toward the next daily resistance at $0.152.
An extended bullish run and a close above this level would allow ALGO to extend gains toward the next key resistance at $0.186.
Currently, the market conditions are volatile, with no clear direction from the traders.