Algorand (ALGO) Defends Crucial Support Amid 45% Downside Pressure

Key Takeaways

• ALGO’s price crashed to a low of $0.18 earlier in the month but is now flirting with $0.22.
• Indicators like EMA, RSI, and IOMAP strongly support breaking past $0.24.
• If bullish momentum strengthens, ALGO could rally toward $0.30 and potentially hit $0.36.
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A relentless rally. That seems like the perfect phrase to describe Algorand’s (ALGO) performance between the first week of November 2024 and December.

During that period, Algorand’s price soared from $0.10 to $0.55 amid reports that cryptos founded in the U.S. would benefit greatly from Donald Trump’s presidency.

But in 2025, that incredible performance has hit a roadblock, with ALGO crashing to $0.18 on March 19. All through the year, the altcoin’s value has dropped by 45%.

Despite the prolonged bearish pressure, Algorand’s price appears to have found stability, as sellers seem exhausted. Does this imply an impending recovery?

Algorand Technical and On-Chain Analysis Reveals Support

On the daily chart, ALGO’s 45% decline resulted in the formation of a falling channel. However, after the drop to $0.18, the altcoin bounced and is now flirting with the upper trendline of the falling channel near $0.22.

Rising to this trendline indicates that Algorand’s price could be on the brink of a breakout. A look at the Exponential Moving Average (EMA) also seems to validate this thesis.

As of this writing, ALGO’s price is trading close to the 20 EMA (blue), a key support. Therefore, if the cryptocurrency’s price keeps hovering around this point, a clear breakout from the bearish pattern shown below could be next.

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) confirms that Algorand is strongly supported.

IntoTheBlock data reveals that over 400 addresses hold approximately 1.47 billion ALGO tokens, accumulated around $0.19. This profitable volume surpasses the unrealized losses between $0.21 and $0.24.

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As a result, ALGO faces minimal resistance ahead. If this trend holds, Algorand’s price could break above $0.24 in the short term, reinforcing the support reflected by the technical perspective above.

ALGO Price Forecast: Bullish Momentum Building

In line with this thesis, the daily chart shows that the Relative Strength Index (RSI) reading has increased. The increase indicates that the momentum around ALGO is exiting the bearish phase.

However, the RSI must breach the neutral line at 50.00 to validate this move. If this happens, Algorand’s price might break above the upper trendline of the falling channel mentioned above.

If that were to happen, the altcoin might experience a sustained rally toward $0.30 at the 0.618 golden ratio. A bullish market condition could further accelerate the move and drive ALGO to $0.36.

Alternatively, if the momentum turns bearish, the token might fail to breach the overhead resistance around $0.22.

In that case, ALGO’s market value could sink to $0.10, the level it last reached in November 2024.