World Of Charts, a popular analyst, shared on X highlighting a bullish pattern forming on Algorand (ALGO). He suggested a potential 50% upward move if the price successfully breaks out of its current formation. Backed by technical indicators and recent price behavior, this projection has gained attention from crypto traders and analysts alike.
What you'll learn 👉
ALGO Chart Analysis
Algorand’s price is moving sideways in what traders call a bullish pennant – this usually happens after a price goes up sharply. Before this pattern formed, ALGO had a strong rise from $0.26 to $0.47. This price movement reflected substantial buying momentum.
The current pennant consists of two converging trendlines: an upper descending resistance line and a lower ascending support line. These trendlines are guiding the price toward a breakout zone. As volatility decreases, a breakout appears imminent. Technical analysis suggests a breakout above resistance could trigger an upward move, aligning with the bullish sentiment in World Of Charts’ tweet.
Key Support and Resistance Levels
The chart identifies clear support and resistance zones that are guiding ALGO’s price action. The lower ascending trendline acts as support, with the $0.39–$0.40 range serving as a key buying zone. Historically, this level has shown strong buyer interest, preventing further declines.
On the upside, the descending trendline represents resistance. A breakout above this level could confirm the bullish pennant pattern. If confirmed, the measured move of the pennant projects a price target of $0.52–$0.54, representing a 24–50% gain from the breakout level.
Moreover, to validate the bullish breakout, traders are monitoring volume closely. A successful breakout typically requires increased trading volume alongside a strong upward price move. This would confirm the presence of buyers and strengthen the likelihood of ALGO reaching its projected target.
Read Also: 5 Reasons Why Cardano (ADA) Price Could Hit New ATH in the 2025 Bull Run
Tweet Analysis and Market Sentiment
World Of Charts’ tweet points to optimism surrounding Algorand’s bullish pennant. The tweet forecasts a 50% bullish wave post-breakout, which aligns with technical projections on the chart. While the chart’s measured move indicates a conservative 24% gain, a stronger breakout could extend gains to meet the tweet’s 50% target.
With the pattern nearing completion, traders remain watchful for signs of a breakout. ALGO’s price movement and trading volume in the coming days will determine if the bullish wave materializes.
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