Why did Algorand price soar over 20% today?

Algorand price shot up 21% on Friday, April 3, becoming the top gainer of the day, bucking the relative stillness of the broader crypto market that has gone cold amid the escalating war situation in the Middle East.

Algorand ( $ALGO ) price rallied to a 9-week high of $0.122 on Friday before settling at $0.121 at press time. Its gains pushed it to become the leading gainer among the top cryptocurrencies by market cap in both the daily and weekly timeframes.

There are three main reasons why Algorand price rallied today.

First, Algorand was recently cited by Google Quantum AI in a research paper focused on threats faced by major blockchains from quantum computing. The paper made several mentions of Algorand for its post-quantum security and advanced Falcon signature technology, placing it ahead of other major players and trailing only behind Bitcoin and Ethereum.

This citation from one of the most prominent tech labs gave the project a big push to new investors while increasing hype for existing ones.

Second, Revolut has officially enabled staking for Algorand on its platform. This enables its customer base of over 70 million investors to stake ALGO directly from the app.

The move has increased investor demand for the token as it triggered a jump in the total amount being staked on the platform, effectively removing those tokens from circulation and hence lowering potential selling pressure.

Third, Algorand’s rebound follows the token hitting an all-time low just five days ago. The token dropping to its floor likely made it very attractive for buyers who bought the dip following its high-profile citation.

Algorand price analysis

On the daily chart, Algorand price has formed a multi-month falling wedge pattern. Following its recent rebound, it has broken out from the upper trendline of the pattern, thereby confirming a bullish reversal. When such patterns are confirmed, the asset often enters a period of sustained growth.

At press time, a similar bullish outlook for ALGO was supported by technical indicators. Notably, the Supertrend has turned green, a notable sign of a trend shift. The Chaikin Money Flow index read 0.19, a strong positive reading hinting that buyers are in control.

For now, $0.139, which sits at the 23.6% Fibonacci retracement level, is the most immediate resistance level to keep an eye on for identifying more upside. A decisive break above that could potentially trigger a rally to $0.225, a target calculated by adding the height of the wedge to the point at which the breakout occurred.

On the contrary, a drop below the $0.085 support level can invalidate this bullish setup.

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