- ALGO forms a clear inverse head and shoulders pattern, holding strong support at $0.2220 ahead of a $0.25 breakout attempt.
- Rising higher lows and repeated resistance tests near $0.2450 signal growing bullish momentum toward $0.2600.
- Accumulation and tightening range suggest ALGO is building a solid base for a possible push beyond $0.30 resistance.
Algorand (ALGO) continues to shape a bullish technical setup as it approaches the key $0.25 breakout zone. Current price action reflects strengthening demand, higher lows, and rising momentum as traders eye the $0.2600 target.
Pattern Developments Point Toward Continuation Potential
Recent chart action reveals a broadening inverse head and shoulders pattern with tightening support at $0.2220. This structure follows several higher lows and persistent resistance tests near $0.2450. Together, these elements outline a potentially bullish continuation setup, pending confirmation.
Meanwhile, Algorand’s price action remains tightly bound within a short-term trading range between $0.2220 and $0.2450. In an analysis shared on X, the analyst noted this formation has developed over multiple sessions, with the left shoulder and right shoulder well-defined between mid and late May. The descending resistance line connecting prior highs has been tested repeatedly, showing sellers’ presence below $0.2500.
Source: Post on X
Observing price behavior, each pullback has formed a rising base, with buyers defending dips around the $0.2220 zone. According to the analyst, this consistently higher-low formation aligns with an emerging uptrend that tracks an ascending support line. A projected breakout path suggests a clean move toward $0.2600, with minimal resistance in the interim once $0.2450 is breached.
Additionally, today’s short-term candlestick structures show sharp recoveries following minor sell-offs, reinforcing aggressive buying. While the RSI and volume indicators are not shown, recent trading sessions reflect rising participation and tighter spreads, suggesting a liquid market with directional focus.
Accumulation Trend Mirrors Broader Cycle Movements
Following the recent bounce off the ascending trendline, ALGO’s broader structure continues to reflect a long accumulation followed by higher price steps. A historical view shows key resistance at $0.30 and $0.60, both levels that triggered previous cycle highs.
Source: Post on X
Furthermore, market observers note that the technical setup resembles early breakout phases seen in late 2021. ALGO’s price has respected the diagonal support drawn from early lows near $0.10, with current trading just above $0.23 reinforcing bullish pressure. Can this trendline sustain future attempts at reclaiming the $0.30 threshold?
However, the price continues forming a constructive structure with diminishing bearish strength over each cycle. Sellers remain active near $0.2450, but recurring tests point to growing upward conviction. If the trend holds, eyes will remain fixed on whether ALGO’s tightening range breaks in favor of continuation.
