Algorand (ALGO) continues to experience selling pressure even after exhibiting early stabilization tendencies in a vital support area. Even though the prevailing trend is bearish, experts believe that a breakout above an essential resistance level will likely propel a strong rally for the token.
As per the writing, the current Algorand price was $0.09263, which was down by 3.74% from the last 24 hours. In terms of trading volume, it had reached a value of $95.33 million, while the market cap was at $826.82 million.
Source: CoinMarketcap
Algorand Price Faces Key Resistance at $0.1065
Recently, crypto analyst Chiefrat pointed out a significant technical level on the Algorand price chart. ALGO needs to breach the resistance level of $0.1065 in order for the bullish trend to continue, says the analyst.
The breakdown above the level of $0.1065 would pave the way for a rise of around 35% for the token, with the next significant resistance at $0.1450. Nonetheless, according to the analyst, further confirmation will be needed before any upside movement.
Source: Analyst Chiefrat X Post
The resistance level has become a key focus for market participants as Algorand attempts to recover from months of downward price action.
Also Read: TRON Price Consolidates at $0.31–$0.325: Is a Breakout to $0.40 Coming?
Weekly Chart Shows Early Signs of Stabilization
Technically, Algorand continues to follow the bigger downtrend seen on the weekly chart. However, recent trading actions seem to indicate the possibility of an emerging base formation near the support levels of $0.08-$0.09.
In the current chart pattern, we see that there are buy interests supporting the recent lows after many weeks of sellers.
This has helped ALGO gain some upward momentum and stay supported above the important accumulation zone. While it is not a major bounce yet, but the fact that there is support below helps in believing that a trend reversal could eventually be seen.
Technical indicators are beginning to show signs of improvement. The Moving Average Convergence Divergence (MACD) histogram has turned positive, while the MACD line is attempting a bullish crossover.
Source: Tradingview
Meanwhile, the Relative Strength Index (RSI) has recovered to 42.6 after previously entering oversold territory. This rebound suggests bearish momentum may be weakening.
Despite these positive developments, the RSI remains below the neutral 50 level, indicating that bulls have not fully regained control of the market. As a result, traders continue to monitor whether momentum can strengthen enough to support a breakout.
What’s Next for ALGO?
A higher degree of a trend reversal for Algorand will be confirmed by reclaiming the range of $0.12-$0.14 resistance. Such an occurrence will greatly boost market sentiment and raise the probabilities of a movement towards higher objectives.
In a case of the breakdown of the existing support zone, ALGO may be faced with another attempt at testing lower levels. Without a breakout of the pattern, the current structure can be considered a sign of stabilization and not yet a bull trend.
Given that there is positive development in momentum indicators and the level of $0.1065 resistance is in focus of traders, Algorand becomes one of the altcoins worth following.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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