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Algorand (ALGO) Set for a Bounce as Resistance Turns to Support

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Elliott Wave patterns suggest a completed wave (iii) and corrective wave (iv).
  • Fibonacci levels indicate strong resistance near $0.42-$0.43.
  • RSI is neutral on both time frames, hinting at indecision.

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.

ALGO Price Analysis

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.

ALGO price analysis
ALGOUSD developing wave (5) | Credit: Nikola Lazic/TradingView 

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.

ALGO Price Prediction

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. 

ALGO price prediction
ALGOUSD at pivot point | Credit: Nikola Lazic/TradingView 

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.

Key Levels to Watch

  • Immediate Resistance: $0.43
  • Secondary Resistance: $0.50
  • Immediate Support: $0.40
  • Critical Support: $0.35
  • Short-Term Target for Wave (v): Above $0.50 if bullish breakout sustains.
  • Invalidation Zone: Below $0.35, signaling deeper corrective potential.
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.
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Nikola Lazic

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. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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