Algorand (ALGO) is at a pivotal moment, as it tries to hold above historically solid support. Following a rally that saw ALGO reach nearly $0.50, the asset has dipped to trade around this support.
Market analysts suggest that if buyers step in at this level, the asset could gain momentum for a potential breakout toward key resistance zones. Rose Premium Signals tweeted this technical setup, advising traders to watch ALGO closely as it approaches key support.
If the current level holds, their analysis suggests a potential bullish reversal, with upside targets at $0.5641, $0.6697, and $0.7693.
💰 $ALGO Watch for the next move #ALGO Price is testing the 0.618 Fibonacci support, setting up for a potential bullish reversal 🐃
— Rose Premium Signals 🌹 (@VipRoseTr) January 28, 2025
Accumulation in this zone could lead to a strong breakout toward key resistance levels 📈
🎯 Target 1: $0.5641
🎯 Target 2: $0.6697
🎯 Target… pic.twitter.com/HADuK04e8O
What you'll learn 👉
Algorand Price Analysis
ALGO’s price action on Rose’s chart shows the Fibonacci retracement tool, a widely used indicator to identify potential support and resistance zones. The 0.618 retracement level, at $0.3680, serves as a historically strong accumulation area. If buyers step in, a bullish reversal could push the price toward the first resistance at $0.5641.
A further decline could see ALGO testing the 0.786 retracement at $0.3318, which acts as a final accumulation zone before the invalidation of the bullish thesis. A drop below the 1 Fibonacci extension level at $0.2857 would signal further downside risk.
Recent price movements indicate that ALGO previously broke out from a falling wedge pattern, a technical structure often associated with bullish reversals. If the asset holds the current support level, a higher low formation could occur, reinforcing bullish momentum.
The accumulation phase at this level suggests that institutional investors and traders could be positioned for a potential uptrend. However, a breakout toward the next resistance levels will require strong volume confirmation to sustain upward momentum.
Read also: Is Onyxcoin (XCN) Binance Listing on the Way, and How Could This Affect the Token?
ALGO’s Current Price Action
According to CoinGecko, ALGO is currently priced at $0.3732, reflecting a 2.69% decline in the last day and a 9.66% drop over the past week. Volume remains a key factor to watch, as increased buying activity could validate a potential breakout.
All in all, if the 0.618 Fibonacci level holds, the asset could see a recovery toward key resistance levels in the coming days.
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