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Algorand (ALGO) Price Stabilizes at Support—Early Signs of a Bullish Turn

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Holding above key Fibonacci support at $0.357
  • RSI is nearing oversold levels, hinting at a possible bounce
  • Price needs to reclaim $0.416 for further upside confirmation

Algorand (ALGO) recently reached a high of $0.61, followed by a corrective phase. Following a five-wave impulsive move, the price action is currently consolidating around a critical Fibonacci support level at $0.357.

Momentum indicators show mixed signals, requiring a careful assessment of structure and support zones.

ALGO Price Analysis 

The daily chart shows ALGO forming a clear five-wave impulse, Wave (iii), peaking at $0.61 on Dec. 3 before entering a corrective phase.

The price is testing the 0.5 Fibonacci retracement level at $0.357, which has acted as a significant support zone.

A successful bounce of this area could confirm the end of the correction, allowing for a potential continuation of the larger uptrend.

ALGO price analysis
ALGOUSD ascending support breakout | Credit: Nikola Lazic/TradingView 

Momentum indicators suggest that selling pressure has weakened. The daily Relative Strength Index (RSI) hovers near neutral to slightly oversold conditions, increasing the probability of a reaction from buyers.

If this level holds, ALGO could begin forming a base for another leg higher.

A decisive move above $0.416 (0.382 Fibonacci retracement) would further confirm bullish intent.

This level has acted as a rejection zone multiple times and must be broken to establish upward momentum.

However, failure to hold the current support could lead to deeper retracements toward $0.297 (0.618 Fibonacci level).

ALGO Price Prediction 

On the 1-hour chart, ALGO has stabilized within a key accumulation zone. The price has repeatedly tested $0.357 but has not broken lower, indicating buyers are defending this level.

This structure suggests a reversal could be forming, with early signs of demand returning.

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

If ALGO maintains above $0.357 and gains momentum, an upward move toward $0.416 is likely.

A breakout above this resistance would confirm the resumption of the uptrend, with targets extending toward $0.49 (0.236 Fibonacci retracement) and beyond.

The rise from Dec. 20 could have been a five-wave impulse or an a-b-c-d-e correction. In the first case, the problem arises from the overlapping wave 4 with wave 1, which can only occur in the leading diagonal.

This is why the a-b-c-d-e labeling could be more accurate, meaning that the downside since Jan. 17 has more downside room. 

The RSI on the lower timeframe is gradually climbing from oversold levels, reinforcing the potential for a move higher.

However, any rejection at $0.416 could slow down bullish progress temporarily before another push higher.

Key Levels to Watch

  • Immediate Resistance: $0.416 (0.382 Fibonacci level)
  • Key Support: $0.357 (0.5 Fibonacci retracement)
  • Critical Support: $0.297 (0.618 Fibonacci retracement)
  • Short-Term Target for Wave (v): Above $0.49 if momentum sustains
  • Invalidation Zone: Below $0.297, signaling extended 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.
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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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