Algorand ($ALGO) has been touted as a promising real-world asset (RWA) altcoin that could rally this week, with popular crypto analyst Ali Martinez drawing attention to the token's bullish chances. As detailed in an AMBCrypto report, Martinez wrote that $ALGO is trading within a channel and remains stuck below a local resistance level at $0.14, and that a daily session close above this level would confirm a breakout toward $0.19. The RWA label ties the token to one of the sector's most closely watched narratives—bringing traditional assets on-chain—giving the analyst's call relevance beyond the price charts alone.

Momentum Builds After Market-Wide Bounce

Over the past 24 hours, Algorand has rallied 10.1%, accompanied by a 41.6% increase in daily trading volume. The token was among a handful of altcoins posting similar gains following Bitcoin's bounce toward $84,000 on Sunday, October 11.

The market-wide rebound spurred $191 million in liquidations within a single day, $141 million of which were short positions. Algorand's share amounted to $141,300 in short liquidations, compared with just $19,800 in long liquidations. Liquidations—the forced closure of leveraged positions when margin can no longer cover losses—skewed heavily toward shorts on the day, a footprint consistent with a rebound that pressured bearish leveraged bets across the market.

Daily Structure Still Bearish Despite Recovery

Bulls have driven a sizeable rally since $ALGO posted a low of $0.0757 in late July, one that challenged the $0.1396 swing high from May. A post-quantum roadmap—an effort to harden the network's cryptography against quantum-computing threats—and increased network activity helped fuel bullish short-term sentiment.

That brief move above the swing high was beaten back, however, and the altcoin fell to $0.115 before bouncing to $0.126. While the recovery appeared to be a positive short-term outcome, the daily swing structure remained bearish. In Martinez's view, a daily session close above $0.14 would mark a solid start to a trend reversal. The next swing high on the daily timeframe sits at $0.19, which explains the analyst's next target for the token.

Traders Weigh Patience Against Early Entry

Traders can take a more aggressive approach and buy $ALGO soon, or wait for a daily structure break followed by a retracement before entering—a path that involves waiting for confirmation.

On lower timeframes, the 4-hour structure was firmly bullish. The 78.6% Fibonacci retracement—a widely used technical tool for gauging how deep a pullback within a trend may run—was tested and yielded a bullish response, meaning a move above $0.1396 would be the signal bullish-continuation buyers could await.

Outlook

Algorand may be the RWA altcoin to deliver a standout week on the price charts, according to the analysis. The token's proximity to the $0.1396 swing high—a level viewed as key to both a long-term trend reversal and short-term bullish trend continuation—underpins those bullish expectations. With $ALGO trading near the analyst's threshold, the coming daily sessions will show whether the token can secure the close above $0.14 that Martinez flagged as confirmation.