Algorand (ALGO) Shows Recovery Signs Following 30% Price Correction

Key Takeaways

• Despite a 30% drop last month, Algorand shows signs of resilience with strong support at $0.20.
• ALGO is forming a bullish pennant, indicating the potential for a breakout that could drive the price higher.
• If buying pressure fails, ALGO could fall to $0.12, but a recovery could lead to a return above $1 in a few months.
• Interested in buying or selling ALGORAND ALGO coin? Read our review of the best exchanges to buy and sell ALGORAND ALGO.

Algorand (ALGO) shows surprising resilience as the broader market faces unprecedented instability. This recent strength contrasts with Algorand’s price action over the past week.

ALGO has dropped by 30% in the last month. However, according to this on-chain analysis, backed by technical indicators, the altcoin could be ready to leave the broader market correction alone and chart its own path.

Algorand 30% Decline Meets Support at $0.20

Algorand’s price reached 2024’s yearly high, surpassing $0.50 in December. But since 2025 began, it has been downhill, with the token trading at $0.19 at press time.

This decline was due to profit-taking and rising selling pressure. However, data from IntoTheBlock shows that ALGO could ease some of this decline.

According to the on-chain analytic platform, the In/Out of Money Around Price (IOMAP) shows the token has strong support at around $0.20. The IOMAP shows addresses and the volume of tokens that are in unrealized profits and losses.

With this data, one can spot support and resistance. A higher volume of tokens in profits indicates support, and the price is unlikely to decrease.

On the other hand, a higher volume of tokens in unrealized losses indicates resistance. As of this writing, CCN observes that nearly 320,000 addresses accumulated 1.51 billion ALGO tokens at an average value of $0.20.

These addresses are in profit and outweigh the volume in losses between $0.21 and $0.23. Due to this, Algorand’s price is likely to surpass $0.23 as long as the market condition does not worsen.

ALGO Price Forms Bullish Pattern

From a technical perspective,  the weekly charts show that Algorand’s price is forming a pattern similar to the one that took the price above $2 in 2021. During that period, the altcoin formed a bullish flag.

Looking for a safe place to buy and sell ALGORAND ALGO? See the leading platforms for buying and selling ALGORAND ALGO.

A bullish flag is a technical pattern that signals a potential continuation of an uptrend. It forms after a price spike, followed by a brief consolidation period that resembles a flag on a flagpole.

This time, it appears that ALGO has formed a bullish pennant since the correction from $0.49. However, the consolidation will likely change to a big breakout if buying pressure increases.

Algorand’s price might climb as high as $0.70 within a few months if validated. Should the bull market resume, this could take the token’s value above $1 for the first time since the 2022 bear cycle.

On the flip side, if ALGO fails to attract significant demand, this might not happen. Instead, the altcoin’s value could sink as low as $0.12.