Key Takeaways
- ALGO’s price broke out of a falling channel, similar to past behavior, which led to significant rallies.
- On the daily chart, ALGO bounced off a supply zone, and its RSI has risen, suggesting bullish momentum.
- The $0.30 resistance aligns with the 0.618 Fib level, and if the bullish trend continues, ALGO could target $0.42.
Algorand (ALGO) is showing some long-awaited signs of life.
After a tough stretch in 2025, the token is trading at $0.23, its highest price in five months. The last time ALGO touched this level was in November 2024, right after Donald Trump won the U.S. presidential election.
Since then, it’s made multiple runs at breaking resistance, only to get knocked back each time. But this time could be different.
If the rally holds, the next significant resistance is $0.30, a key level that lines up with the 0.618 Fibonacci retracement. If bulls manage to push past that, a move toward $0.42 might be in the cards.
ALGO Ready To Test Key Resistance
Following the market recovery, Algorand’s price has increased by 20% in the last seven days. On the weekly chart, the altcoin retested $0.23 after it broke out of a falling channel.
As seen below, the downtrend started around the second week of December 2024 and lasted until the first week of this month.
You’ll Want To See This
Furthermore, the breakout seemed similar to that between March and December 2024. The ALGO coin price fell from $0.28 to $0.10 between Oct. 28, 2024, and March 11.
But after breaking out of a descending channel late last year, the ALGO coin price went on a massive 350% rally, hitting $0.50 in December. A combination of favorable macro trends drove that breakout.
However, this does not imply that the cryptocurrency will replicate the exact performance, as there seems to be a difference between then and now.
From our observation, the Moving Average Convergence Divergence (MACD) flipped to the positive region at that time and validated the breakout. As of this writing, the MACD reading on the ALGO/USD weekly chart is negative.
While ALGO’s price might continue to increase, it might struggle to rise above the $0.30 resistance except the momentum improves.
ALGO Price Analysis: Eyes On $0.30
On the daily chart, the ALGO coin price has bounced off the supply zone around $0.16. This happened after it rose past the lower and upper trendlines of the falling wedge.
Amid this breakout, the Relative Strength Index (RSI) reading has risen to 68.40, indicating bullish momentum. Should the RSI reading continue to climb, then ALGO’s price might climb toward the supply zone around $0.30.
This supply zone is also positioned at the same level as the 0.618 golden pocket ratio, indicating that buying pressure could drive the altcoin there. Algorand’s price could rise to $0.42 in a highly bullish market condition at the 0.382 Fibonacci level.
However, if the token becomes overbought, the sell wall at $0.30 could pull ALGO back. If that happens, the altcoin’s next move could be a drop below $0.20, thereby invalidating the bullish bias.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
