Will Algorand's breakout of this demand zone propel it past $1

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

The past 24 hours saw a transaction volume^[1] amounting to $140 million on the Algorand^[2] network the previous day, according to data on Messari.io. While this figure has been rising in the past few days, it was also stark in contrast to the $11.3 billion worth of transactions on Ethereum and ETH. Coinglass data^[3] showed that ALGO has seen a slight increase in open interest on futures in the past 24 hours, the implication being that if $0.988 can be broken, the market would take notice and ride the bullish momentum.

ALGO- 1H

In the short term, ALGO showed a bullish bias on the price charts. In the past week, it has climbed above the former monthly (March) highs at $0.895, and in the past few days, this level has served as support. There is also the $0.92 area (cyan box) which has formerly been a zone of resistance.

At the time of writing, it looked to have been flipped to support. Using the swing low and swing high at $0.8 and $0.988, Fibonacci retracement levels (yellow) were plotted. Above $0.988, the $1 and the $1.03 levels can act as take-profit levels.

There was some evidence that buying pressure was waning in recent hours. This could see ALGO pullback toward the $0.87-$0.89 area.

Rationale

The hourly RSI was above neutral 50 and did not exhibit any bearish divergence yet. On the OBV, however, something was slightly amiss. While it was not a divergence by itself, the OBV has formed lower lows in the past couple of days. This meant selling volume has