Algorand’s native token, ALGO, is approaching a critical technical juncture, as price action continues to carve out a descending triangle pattern.
According to the crypto analyst Ali Charts, lower highs and firm support have compressed volatility, signaling growing tension between buyers and sellers.
Such formations often precede decisive breakouts, placing the token firmly on traders’ radar across broader cryptocurrency markets today amid uncertainty.
Source: Ali Charts X Post
Market analysts note that the tightening structure could trigger a move of roughly 20%, depending on breakout direction. A push above descending resistance may ignite bullish momentum, while a breakdown below support could accelerate selling pressure.
Volume expansion and overall market sentiment will likely determine whether Algorand enters a renewed rally or corrective phase soon.
Also Read: Algorand (ALGO) Faces Continued Downtrend Despite 2025 Blockchain Milestones
ALGO Faces Pressure Below Key Fibonacci Levels
According to TradingView, on the 4-hour ALGO chart, the price has rejected the Fibonacci retracement zone between $0.0883 and $0.0909, thus confirming that this is a resistance zone.
After a brief period of consolidation, the sellers took over, driving the price below the 1.0 level, which is seen at $0.0866. The lower highs and the bearish candles are indicative of weakening bullish pressure.
Source: TradingView
Since the price is now trading below the important retracement support, the Fibonacci extensions are used to show the possible price targets for either direction.
The next important support level is at the level of $0.0838, while further support comes at the levels of $0.0793, $0.0748, and $0.0720, depending on the price decline.
Momentum Indicators Supports Cautious Outlook
The RSI (14) is currently at 34, which is in the lower range and is close to the oversold zone but has not yet entered it. This indicates low trading volume and the dominance of sellers.
The RSI is also below its signal average, which is a bearish indicator. The RSI is also declining, which is a bearish signal, but it is close to the oversold zone, where it could rise if the trend stabilizes.
Source: TradingView
The MACD (12, 26, 9) is still below the zero line, indicating bearish momentum. The MACD line is below the signal line, indicating no crossover.
The histogram bars are still below the zero line, indicating that the sellers are still driving the market. However, the size of the histogram is small, indicating that the momentum is steady rather than increasing; therefore, the bearish pressure is still intact.
Also Read: ALGO Breakout Potential: Daily Chart Signals Upside Toward $0.3116 Target
