Algorand (ALGO) has recently witnessed a surge of 12.52% in the past 24 hours, bouncing back from a pullback earlier this week. This upward movement comes on the heels of a market correction that saw ALGO decline by 4.26% on the weekly charts. However, technical indicators are now pointing toward a potential trend reversal, signaling that the altcoin may be poised for more gains.

A Significant Recovery After a Dip

The past month has been a rollercoaster for Algorand. While the altcoin gained an impressive 186% in the weeks leading up to the recent market correction, the price recently dipped as low as $0.35. This decline was followed by a sharp recovery, with ALGO now trading at $0.46. The 12.52% rise in just 24 hours has raised renewed optimism in the market, making investors wonder if the trend reversal is now firmly in place.

Despite this recent surge, the broader question remains whether ALGO can maintain this momentum or face further volatility in the coming days. Much of the answer lies in the technical developments currently unfolding on the charts.

Bullish Crossover: A Positive Technical Indicator

One of the most notable signals that has emerged on Algorand’s charts is the bullish crossover. A crossover occurs when a short-term indicator, such as the Stochastic Relative Strength Index (Stoch RSI), moves above a longer-term one, indicating a potential shift in market sentiment. In Algorand’s case, the Stoch RSI recently crossed over, suggesting that buyers are gaining control as sellers lose strength.

This bullish crossover is a key technical development, as it signals that the downward momentum has started to subside. Investors are increasingly optimistic that the market is reversing course, paving the way for potential further upside in ALGO’s price.

Increased Whale Activity and Market Sentiment

Another critical factor contributing to the bullish sentiment surrounding ALGO is the spike in whale activity. In the past 24 hours, large transactions on the network have surged by 62.22%, from 180 to 292. Such an increase in whale activity often indicates that large holders are actively engaging with the asset, which can be seen as a positive sign for the token’s future.

Additionally, whale inflows have increased by 49.67%, totaling $131.06 million. This suggests that big investors are accumulating more ALGO, likely in anticipation of future price growth. This accumulation further supports the notion that Algorand is experiencing a significant trend shift, driven by strong demand from larger market players.

Long Positions Dominate the Market

The Long/Short ratio is another metric to monitor, and currently, long positions are dominating the market, with 67.21% of traders holding long positions. This suggests that the majority of market participants are bullish on ALGO, reflecting widespread optimism about its future prospects. Furthermore, the positive DyDx funding rate indicates that traders are willing to pay a premium to hold long positions, even in the face of short-term market fluctuations.

What’s Next for Algorand?

Looking ahead, if the bullish momentum continues, Algorand may test key resistance levels at $0.52 and $0.60. A breakout above $0.52 would signal continued upward momentum, possibly pushing the price to $0.60 or higher. However, if the market turns bearish once again, the price could retrace to the $0.40 support level, which could act as a cushion for any declines.