Algorand (ALGO) Soars 22% Daily Following Google’s Warning: Further Gains Ahead?

Is ALGO ready to reach $0.20 or will the rally be replaced by a sharp correction?

The cryptocurrency market has taken a breath of fresh air over the past 24 hours, with multiple leading digital assets charting minor increases.

Algorand (ALGO) stands out as one of the top performers following a 22% daily pump. Some analysts believe there is more fuel left for an additional short-term rally, while certain indicators suggest a correction could also be on the way.

More Gains Ahead?

Earlier today (April 1), ALGO surpassed $0.10 for the first time since February, while its market capitalization neared the psychological $1 billion mark. According to CoinMarketCap, it has been among the top-trending cryptocurrencies over the past 24 hours, while its resurgence was most likely triggered by Google’s latest report.

ALGO Price, Source: CoinGecko

The company’s quantum computing team recently published a white paper, claiming that future quantum computers might be able to crack the cryptography behind Bitcoin and other projects much more easily than previously believed.

The report specifically highlights Algorand as a protocol that provides “an example of real-world deployment of PQC on an otherwise quantum-vulnerable blockchain.” Google’s team has further praised the project for deploying post-quantum Falcon digital signatures for smart transactions and state proofs. For its part, Algorand Foundation noted that aside from Bitcoin and Ethereum, no other blockchain received more attention in the report than Algorand.

“The alarm has been sounded. Algorand has been answering it for years,” the team said on X.

ALGO’s ascent has caught the eye of many market observers, some of whom see further upside potential. X user Aman argued that the price has bounced from support with a falling wedge breakout, hinting at a bullish reversal.

The analyst using the moniker Clifton Fx also chipped in. They claimed that ALGO is “trying to break the descending channel” in the daily timeframe, and if that happens with a “momentum candle,” it could lead to a jump to almost $0.20.

The Bears May Quickly Regain Control

Despite the impressive revival over the last 24 hours, ALGO remains far below its all-time high of $3.23 reached in the summer of 2019, while ongoing bearish market conditions could spur a potential rally ahead.

The asset’s Relative Strength Index (RSI) also indicates that a pullback may follow in the near future. The ratio has risen above 80, meaning that ALGO is overbought and on the verge of a possible correction. Conversely, readings below 30 are usually interpreted as buying opportunities.

ALGO RSI, Source: RSI Hunter