This Bullish Pattern Sent ALGO Surging — Don’t Miss the Next One

Key Takeaways

Algorand (ALGO) trades inside the $0.285 resistance area.
The ALGO price has created a bullish double bottom pattern.
Can Algorand break out above its main resistance and move to new highs?

After months of sideways action and a 76% price decline, ALGO has returned to life.

Algorand is one of the best performers in the crypto market during the past 24 hours, confirming a bullish price pattern with breakouts from several resistances.

With ALGO now knocking on the door of a breakout above $0.285, all eyes are on the resistance to see if the price can finally break through.

ALGO Price Reaches Resistance

The ALGO price fell by 76% under a descending resistance trend line between December 2024 and June 2025.

However, the momentum shifter afterward, and ALGO bounced, confirming the $0.160 horizontal area as support.

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Even though it did not break out from the resistance trend line on the first try, the price of ALGO created a higher low in June and broke out last week.

Today, the ALGO price is knocking on the door of the $0.285 horizontal resistance area. This isn’t just a horizontal resistance area; it is a critical level that has thwarted every attempt at moving upward for over two years.

The only exception has been the aforementioned December 2024 high, but that was a deviation that led to a massive plunge.

ALGO Weekly Movement — ALGO/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView

So, a weekly close above this level will confirm the correction is finally over, paving the way for new highs.

Momentum indicators support the bullish ALGO prediction. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) trend upward.

ALGO Creates Bullish Pattern

Zooming in on the 3-day chart, we see that ALGO created a bullish double bottom pattern between April and June 2024.

Bullish divergences in the RSI and MACD have accompanied the pattern, increasing its legitimacy.

Finally, the breakout from the diagonal and horizontal resistances confirms that ALGO has started a bullish trend.

In this case, the wave count can provide the path for the development of the ALGO upward movement.

The most likely count suggests that the price of ALGO is in wave three of a five-wave upward trend that started in April.

ALGO Wave Count — ALGO/USDT Daily Chart | Credit: Valdrin Tahiri/TradingView

Since wave three is often the sharpest out of the bullish waves, this projection fits perfectly with the parabolic shape of the current increase.

The first potential target for the top of the short-term ALGO price movement is $0.47, giving wave three 2.61 times the length of wave one.

While wave three often ends at the 1.61 level, the sheer strength of the current movement makes an extension more likely.

Afterward, the Algorand price could correct before beginning another upward movement.

On-Chain Stats are Lacking

Interestingly, on-chain indicators do not back the rally. Even though the price increased sharply, there is no accompanying surge in revenue or fees.

On the contrary, both have fallen considerably in the last year, especially so in the past four weeks.

Algorand’s revenue peaked above $70,000 in November 2024 and has fallen steadily.

Algo On-Chain — Algorand On-Chain Stats | Credit: Token Terminal

While revenue stabilized near $15,000 for several months, it fell again in June and has hovered near $6,000 since then.

It is still unclear why this decline happened, but the reading does not bode well for the future trend, suggesting that the activity stats do not back the price increase.

Key Resistance Ahead

While ALGO’s breakout and bullish pattern point to a sustained rally toward $0.47 and beyond, weak on-chain activity casts doubt on long-term strength.

A close above $0.285 will be key to confirming the bullish reversal, paving the way for a parabolic rally toward $0.472.

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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.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

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