Key Takeaways
ALGO spiked over 33% to a 4-month high as Volume soared, but Netflow trends and derivatives data hint at rising sell pressure. Has profit-taking already capped this rally’s upside?
Algorand [ALGO] jumped 33.68% in 24 hours, breaking out of a multi-month range to touch a 4-month high of $0.31 before easing to $0.2808.
As a result of a strong uptick, the altcoin’s Market Cap surged to $2.5 billion, while 24-hour Volume rose 357.45% to $762.75 million.
Such a massive upswing in volume alongside market cap signals massive capital flow and growing on-chain activity. But is this a speculative bubble or the start of something bigger?
Buyers charge back into spot markets
After taking a step back in the market, buyers returned with strength. According to Coinalyze, Algorand has recorded two consecutive days of a positive Buy Sell Delta.
At press time, Algorand saw 111.39 million in Buy Volume compared to 110.6 million in Sell Volume. The previous day, the altcoin saw 181.84 million in Buy Volume relative to 168.61 million.
As a result, the altcoin ALGO saw a positive delta of 791.88K and 13.24 million respectively; a clear sign of aggressive spot demand.
Derivatives heat up, but…
Interestingly, as Algorand price spiked, so did investors’ need for strategic positions.
According to CoinGlass, Open Interest jumped 54.85% to $163.36 million, while Derivatives Volume surged by 574.91% to $980.9 million.
Notably, when Volume surges alongside OI, it signals growing participation in the Futures market as traders take strategic positions.
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Author: Gladys Makena
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