Key Takeaways
Algorand (ALGO) has recently exhibited significant volatility, marked by clear Elliott Wave patterns on multiple time frames.
A five-wave impulsive structure appears to be completed on the higher time frame, while the lower time frame suggests an ongoing corrective phase.
This analysis explores the price action across both charts and provides potential scenarios for short-term and long-term price movements.
The daily chart highlights a broader impulsive Elliott Wave structure. Wave (iii) reached a high at 0.61 on Dec. 3 before correcting into wave (iv), which retraced near the 0.618 Fibonacci level at $0.28.
The recovery from this level has been steady, but resistance near $0.42-$0.43—coinciding with the 1.272 Fibonacci extension—remains a hurdle.
The daily chart’s Relative Strength Index (RSI) shows neutral conditions, neither overbought nor oversold territory.
This indicates that the market is consolidating and awaiting a clear directional bias.
The broader bullish structure remains intact, with wave (v) potentially aiming for extensions at $0.50 (1.618 Fibonacci extension) and higher targets near $0.75 (2.618 extension).
However, breaking below $0.35 (key support) could invalidate this bullish scenario, leading to deeper corrections.
The 1-hour chart shows that ALGO recovered from the more significant corrective wave four at a low of $0.30. The following five-wave impulse tested key resistance levels around $0.50 at the 1.618 Fib extension.
An ascending channel formation suggests price compression, with a breakout likely determining the next move.
We can see that ALGO is currently testing the upper boundary of the horizontal zone it previously broke out from.
If the price finds support here above $0.40, that could mean that the pullback since its recent high marked the completion of the pullback that established support at prior resistance.
Should this confirmation occur, ALGO would be set to continue its upward trajectory sustainably.
Alternatively, a bearish scenario could play out if the price breaks below the $0.40 support level, targeting deeper retracements at $0.35 or $0.27 (the 0.786 Fibonacci level).
The RSI on the 1-hour chart remains neutral but is edging lower, suggesting weakening momentum that could precede a short-term dip.