- ALGO’s $0.35 support aligns with the MA zone; a breakout could target $0.50, while failure may push prices to $0.30 or lower.
- Analysts see a bullish symmetrical triangle pattern; RSI rebound at 36.51 hints at weakening bearish momentum but no confirmation yet.
- MACD shows diminishing bearish pressure; increased trading volume is key for ALGO to test resistance levels at $0.36 and $0.40.
Algorand (ALGO) is approaching important price levels as noted by analysts Dan Gambardello and Ted. Dan suggested that ALGO has the potential to make an upward move in the coming weeks, indicating optimism in the token. Ted noted ALGO’s formation of a bullish symmetrical triangle pattern, suggesting imminent price action.
Price Movements and Key Indicators
At the time of writing, ALGO was trading at $0.3556, a big drop from its 2024 highs. The price saw bullish momentum early in 2024, peaking before a prolonged correction phase that lasted until late 2024. The green 50 week MA crossed above the blue 200 week MA earlier in 2024, forming a golden cross.
This bullish indicator pushed the prices higher before the correction. ALGO is trading near these moving averages, with $0.35 being the crucial support level. Volume trends show a spike during the late 2024 rally, followed by normalization, indicating reduced momentum.
Support and Resistance Levels
Support at $0.35 aligns with the moving average zone, making it a critical level for ALGO’s stability. Immediate resistance is near $0.50, with additional resistance around $0.70, the previous peak.
Should ALGO fail to hold $0.35, it may test lower support levels at $0.25 or $0.20. On the upside, a bounce from this support, accompanied by increased volume, could push ALGO toward $0.50 or higher.
Short Term Price Levels
On the 4 hour timeframe, ALGO shows a decline from resistance near $0.40, finding support around $0.34. The RSI is at 36.51, rebounding from oversold levels. This indicates weakening bearish momentum, though a rise above 50 is needed to confirm bullish strength.
The MACD line, currently at -0.0089, is below the signal line at -0.0134, suggesting bearish momentum. However, diminishing negative bars on the histogram suggest a potential bullish crossover if buying pressure increases.
Trading Volume and Future Trends
Trading volume is moderate at 3.55M, indicating cautious market activity. Increased volume will be crucial for any breakout. Support remains at $0.34, while resistance levels are set at $0.36 and $0.40.
A sustained rebound above $0.36 could push ALGO toward $0.40, especially if accompanied by a bullish MACD crossover. Failure to maintain $0.34 support may lead to a decline toward $0.30 or lower, depending on market conditions.
