- Algorand retests the crucial $0.20 support after a 9.21% drop, signaling a possible bullish reversal if the level holds strong.
- ALGO shows a full retracement to its pre-rally range with Fibonacci levels pointing to $0.30, $0.42, and $0.50 as key resistance points.
- Analysts eye a potential rally from July 2025 with price targets of $0.3999, $0.5233, and $0.6445 if support above $0.1837 remains intact.
Algorand (ALGO) is retesting the crucial $0.20 support level after a sharp 9.21% weekly decline. The asset dropped to $0.2010 on Binance, retracing prices last seen before its October 2024 breakout. The retest follows a breakout above a falling wedge pattern on the daily chart. Market watchers now anticipate a potential bullish reversal if the token can sustain this support. A bounce here could ignite new momentum, with critical resistance zones at $0.24, $0.30, $0.40, and $0.50.
Key Patterns Define Current Market Structure
ALGO’s past price trend reveals different determinative trends. The price depicts a sharp spike upwards dramatically in late 2024 around $0.50. However, it proved to be a flash. Bearish activity took over later in early 2025 by forming a bearish triangle pattern that persisted up to May 2025. The present low was caused by this pattern’s failure. Therefore, the new trend is only bringing the price back into its pre-rally consolidation range of $0.10-$0.20.
Source: Rose Premium
Moreover, there is historical significance for the $0.20 level. This range had previously acted as a ceiling before the October 2024 breakout. Consequently, the current retest could confirm this level as support, offering a potential springboard for an upward trend.
Fibonacci Levels and Future Targets
In addition, Fibonacci retracement levels make the technical outlook clearer. The 0.786 level at $0.22 is extremely close to the current price zone. Above this, the 0.618 level is at $0.30, then the 0.5 level at $0.35. Further up, the 0.382 and 0.236 levels are at $0.42 and $0.50, respectively. These levels can serve as future resistance areas in any possible recovery.
Analysts have projected longer-term targets at $0.3999, $0.5233, and $0.6445. A hypothetical trajectory suggests a possible rally beginning around July 2025. However, ALGO must maintain support above $0.1837 to avoid further downside.
