Algorand (ALGO) Faces Key Resistance Level as Rally Stalls Below Trendline

• ALGO completed a W-X-Y-X-Z correction.
• A 5-wave impulse suggests that a bullish reversal may be starting.
• Correction toward $0.1683 could complete wave (c) before breakout.
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Algorand (ALGO) appears to be completing a prolonged corrective structure within a falling wedge, potentially setting up a trend reversal.

The higher time frame chart shows a complex correction ending, while the lower time frame indicates an impulsive five-wave move.

As the price pressures the key resistance level, will we see a breakout, or will a rejection cause a pullback?

ALGO Price Analysis

ALGO has been downtrend since its peak above $0.60 in December 2024.

It formed a clear W-X-Y-X-Z corrective pattern culminating in a descending wedge—a classical bullish reversal structure.

The final Z wave bottomed out around $0.148 on April 7.

Since then, we have seen a 36% recovery to a high of nearly $0.20, with the price now interacting with the descending resistance.

Fibonacci retracement levels drawn from the top to the $0.1039 low show that ALGO is currently testing near the 0.786 retracement at $0.2122.

This level has acted as key resistance during previous rebounds and must be broken convincingly to validate the reversal.

The Relative Strength Index (RSI) has exited oversold territory but remains neutral, giving room for a momentum shift if volume confirms the move.

Price action is compressing inside a wedge and has broken slightly upward, suggesting the downtrend may be over. However, strong confirmation lies above $0.2122.

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As the price approached this key resistance, we saw a slowdown in momentum, which could be interpreted as a sign of weakness.

On the other hand, it could be a sign of consolidation before the price can make a decisive breakout above the level and signal the start of a new bull phase.

ALGO Price Prediction

The lower timeframe (1-hour chart) displays a completed five-wave impulse (i)-(v) from the $0.148 low, signaling a potential reversal from the broader downtrend.

An ascending triangle formed, which could be interpreted as the corrective wave (iv). We assume that the whole upward move has ended and expect the first bullish correction.

This should be the start of an ABC corrective pattern, with wave (a) underway and wave (b) possibly forming a lower high before another dip as wave (c).

The correction could retrace toward the $0.1683 support zone again before resuming upward momentum.

If this ABC correction completes above that level, the next impulsive rally could begin, targeting the 0.618 Fib resistance at $0.2973 as the next mid-term goal.

This scenario is further supported by RSI, which has pulled back from overbought levels and is near neutral. A higher low on both price and RSI would strengthen the bullish case.

Once the correction concludes, we expect a breakout above the descending resistance trendline around $0.19–$0.20, followed by a push toward $0.2122. A daily close above that resistance zone would likely attract further buying pressure.

Key Levels to Watch

• Support: $0.1683.
• Resistance 1: $0.1900.
• Resistance 2: $0.2122 (0.786 Fib).
• Target Resistance: $0.2973 (0.618 Fib).