Algorand (ALGO) Stabilizes — Key Levels to Watch for a Potential Rebound

Key Takeaways

• ALGO finds support at 0.618 Fibonacci level.
• Breakout potential from short-term consolidation.
• The resistance zone near $0.357 is the key upside target.

Algorand (ALGO) has been navigating a corrective wave structure, recently forming a potential bottom before attempting a rebound.

The higher time frame chart (4 hours) indicates a significant downtrend, while the lower time frame chart (1 hour) suggests the early stages of recovery.

We will evaluate ALGO’s potential price movements using Elliott Wave Theory, Fibonacci retracements, and RSI analysis.

ALGO Price Analysis

The 4-hour chart shows ALGO has completed a clear five-wave impulsive decline, marking the end of a corrective wave (C) near $0.22, slightly above the 0.786 Fibonacci retracement.

This sell-off followed a failed breakout attempt above $0.41 (0.382 Fibonacci retracement) on Jan. 31, where the price was rejected at a key descending trendline.

The decline extended into February, confirming a wave 4 correction in a larger cycle.

Following this bottom, ALGO has begun forming a potential reversal pattern. The Relative Strength Index (RSI) on the 4-hour timeframe is recovering from oversold levels, suggesting that downward pressure is fading.

The price currently consolidates slightly below the 0.618 Fibonacci level at $0.29, reinforcing this as a strong support zone.

The structure now suggests a possible wave 1 formation to the upside, which needs confirmation with higher volume and a decisive close above the 0.357 resistance.

Failure to hold above the 0.29 region may invalidate the bullish reversal and push ALGO into deeper corrective territory.

The next critical support lies near $0.21 (0.786 Fibonacci), which aligns with prior structural lows.

ALGO Price Prediction

ALGO is forming an early-stage impulsive wave count on the lower time frame, with imminent breakout from a short-term wedge pattern.

The initial wave (i) pushed prices higher, above the key $0.29 level, followed by a corrective wave (ii) that tested support near $0.28.

A breakout above the wedge would confirm wave (iii), likely pushing ALGO toward the $0.35-$0.36 resistance zone.

If wave (iii) extends further, Fibonacci projections indicate a potential move toward $0.41 (0.382 retracement from the larger decline).

However, if momentum weakens, a rejection at $0.35-$0.36 could result in a pullback for wave (iv) before another attempt at wave (v) continuation.

The RSI on the 1-hour chart is hovering around neutral, leaving room for further upside before reaching overbought conditions. If bullish momentum sustains, ALGO could rally beyond $0.40 in the coming sessions.

However, a drop below $0.28 would weaken the bullish structure and put further downside into play.

Key Levels to Watch

• Immediate Resistance: $0.35 (0.5 Fibonacci retracement).
• Major Resistance: $0.41 (0.382 retracement from the larger decline).
• Immediate Support: $0.29 (0.618 Fibonacci retracement).
• Critical Support: $0.21 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $0.36 if bullish momentum sustains.
• Invalidation Zone: Below $0.28, signaling potential further downside.