Though the spot CVD was rising to show steady spot demand, the funding rates had fallen into negative territory. This presented a short-term problem for $ALGO crypto bulls.

The negative rates suggested the short trade was overcrowded, which pointed to short-term bearish expectations due to overextended market conditions. On the other hand, further price moves higher can liquidate these short sellers, resulting in a squeeze.

Which way is $ALGO crypto poised to go in the long term?

A 72% rally in six weeks was a sign of intent, as was the price move back above the 20-week moving average. Yet, the price structure has been bearish since July 2025. The swing structure broke bearishly in late 2025 and has…