The daily ALGO chart shows the price has rallied significantly since Nov. 4, gaining over 500%. It went from a low of $0.10 to a new yearly high of $0.61 on Dec. 3 before decreasing 36%.
The strong upward move is identified as Wave (iii), with the current retracement resembling Wave (iv) consolidation within key support zones.
ALGOUSD developing wave 4 correction | Credit: Nikola Lazic/TradingView
The red resistance zone ($0.35-$0.42) marks a crucial area ALGO struggled to sustain. If Wave (iv) completes within this zone, the next move could push toward higher Fibonacci levels, targeting values over $0.66, the ending wave from a five-wave impulse.
The daily chart Relative Strength Index (RSI) indicates a cooling-off phase after overbought conditions, aligning with Wave (iv)’s corrective nature.
Momentum stabilizes, and strong support appears around $0.35, aligning with the 1 Fibonacci retracement. A bullish continuation would confirm Wave (v) targeting new highs.
Key Observations
ALGO peaked near the 2 Fibonacci extension ($0.60) before retracing.
Wave (iv) is consolidating near a red resistance zone.
A bullish breakout could indicate a higher high is ahead.
RSI suggests momentum cooldown after overbought conditions.
ALGO Price Prediction
The hourly ALGO chart showcases a descending triangle formation. The corrective structure labeled (a)-(e) within Wave (iv) suggests consolidation, with the price hovering near the $0.39 mark.
The downward slope indicates sellers’ dominance, while a breakout direction will determine the next significant move.
ALGOUSD one more leg down likely | Credit: Nikola Lazic/TradingView
The red zone (~$0.35-$0.40) remains critical for support and resistance, acting as Wave (iv)’s floor.
The lower boundary of $0.35 aligns with Fibonacci retracement support, providing a significant safety net if the correction deepens. A breakout above the descending triangle could trigger Wave (v) toward prior highs.
RSI remains neutral, reflecting consolidation, with no clear momentum shift. Key levels include resistance at $0.40-$0.42 and support at $0.35, followed by $0.27.
A break above $0.42 may confirm renewed bullish strength targeting $0.50.
Support: $0.35 (Wave iv lower range) and $0.27 (key Fibonacci level).
Breakout Target: $0.50 (1.618 Fibonacci extension from prior analysis).
Trend Confirmation: A break above $0.42 signals a bullish continuation; failure risks deeper correction.
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.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
