Whale sold 21 million USD, does ALGO still have a chance to break through?

On-chain data recorded a massive movement: a whale transferred 86.5 million ALGO, worth over 21.6 million USD, to the Kraken exchange, instantly making Algorand (ALGO) the center of attention in the market.

This unexpected move reflects the cautious sentiment of investors, as large capital flows into exchanges are often interpreted as a signal of increased selling pressure.

Nevertheless, ALGO is currently establishing an important technical pattern, attracting close attention from the trading community – a factor indicating that the market still has the capacity to absorb volatility if demand remains stable.

Flag Pattern: Is ALGO About to Break Out?

The daily chart shows that ALGO is in an accumulation phase, forming a pennant pattern after a strong breakout in July. Currently, the price is "squeezed" within a narrow range, with support around 0.2200 USD and resistance at 0.2607 USD, while the upper cap is at 0.2993 USD.

Source: TradingViewAt the time of recording, ALGO is trading at 0.2409 USD, reflecting a fierce tug-of-war between bulls and bears right at critical levels. The MACD indicator is also oscillating around the neutral zone, suggesting that the market is about to witness a shift in momentum.

Many traders see this as a "energy accumulation" phase for a new breakout, but the final direction remains a mystery.

Whales dominate average order size in the futures market

Futures contract data shows that large trading orders from whales still dominate, as evidenced by the superior average order size. This confirms that powerful players continue to maintain a strong presence in the market.

Unlike short-term speculative activities, this trend seems to reflect a carefully calculated strategy, as whales actively control key liquidity areas.

Source: CryptoQuantNotably, these large-scale moves could amplify volatility if the market enters a rapid acceleration phase. Unlike retail orders, futures contracts worth tens of millions of USD from whales have the power to reshape the price structure in a short amount of time.

For this reason, traders closely monitor this signal, as the control of whales can quickly shift market sentiment towards a strong breakout or a sudden drop.

The liquidation chart reveals pressure on short positions

Liquidation data shows a stark difference between the two sides: over 72,800 USD from Long positions has been "blown away", while the figure for Short positions is only at 28,300 USD.

This distance reflects the significant pressure still weighing on the bears, while suggesting that efforts to push the price up may be bolstered by unexpected "short squeezes."

Source: CoinGlassNotably, major exchanges like Binance and OKX have recorded a steady liquidation flow leaning towards buy orders, thereby creating localized volatility hotspots.

In this context, the short-term outlook indicates that the bears are facing higher risks, especially if the price breaks through the resistance zone. Many traders currently view the liquidation trend as one of the key factors determining the short-term volatility of ALGO.

Can ALGO withstand the pressure from whales?

Algorand is currently at a fragile balance, with one side being the selling pressure from the influx of funds into the exchange, while the other side is technical signals suggesting a potential recovery.

The flag pattern, the strong influence of whales in the derivatives market, and the imbalance in liquidation activities all indicate that the downward trend is unlikely to dominate, unless selling pressure suddenly increases significantly.

If buying pressure remains strong and the price breaks above the 0.2607 USD mark, ALGO has the opportunity to advance towards the 0.2993 USD area. Conversely, prolonged sell-offs could cause this coin to drop below 0.2200 USD. At this moment, ALGO's resistance against the cash flow from whales will be a key factor determining whether the market can maintain stability or will gradually lean towards the bears.

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