- Algorand is challenging its descending trendline, with a breakout level at $0.26 and strong horizontal support at $0.22.
- Technical signals are indicating bearish momentum is fading, with MACD turning positive and DMI signalling buyers are slowly taking over the direction of the short-term trend.
- A strong breakout above $0.26 could create targets at $0.28 and $0.32 while a failure to break may return ALGO to the $0.22 level.
Algorand (ALGO) is testing its descending trendline after weeks of compression, creating a decisive moment for traders. The $0.26 resistance and $0.22 support levels are shaping the next market direction.
Compression Signals Breakout Ahead
The ALGO/USDT daily chart shows price pressing against a descending resistance line that has restricted upside since mid-July. Current trading is around $0.2413, while the $0.2246 area has served as reliable support. This has formed a descending triangle structure, typically pointing to imminent volatility.
CryptoPulse shared that Algorand is at a decision point, with buyers eyeing a potential breakout above $0.26. Failure at this resistance, however, could send the price back toward $0.22. Market participants are watching closely, as compression patterns usually precede strong directional moves.
The $0.22 level remains the critical defense line for bulls. Multiple retests have reinforced this horizontal zone, making it the most important near-term support. If broken, the path toward $0.20 could open quickly.
Momentum Indicators Show Shifting Strength
Technical signals suggest that bearish momentum is losing strength.Recently the MACD histogram flipped positive while the MACD and signal lines come together indicating the possibility of a bullish crossover. The MACD histogram will often serve as early indications of changes in trends.
The DMI also shows some improvement as the +DI line is gaining ground on the -DI line. Buyers are starting to show strength, but ADX is still too low to confirm a strong trend. Low ADX often precedes larger market moves, reinforcing expectations of volatility.
A confirmed breakout above $0.25–$0.26 could see ALGO target $0.28. Beyond this, the next notable area sits at $0.32, which aligns with July’s local highs.
Key Levels to Watch in the Coming Sessions
The bullish scenario depends on a daily close above the descending trendline. Sustained buying momentum at this point could change the current structure. Traders are monitoring resistance at $0.26 as the potential trigger.
On the downside, failure to break higher may bring renewed selling pressure. Rejection here would likely push ALGO back toward the $0.2246 support zone. A clean breakdown below $0.22 would invalidate the bullish case and expose further downside.
With ALGO climbing 3.5% in the prior 24 hours and 5.25% in the previous week as of this writing, momentum is tipping in the favor of buyers in the short term. It will take either a decisive breakout above resistance, or a decisive breakdown below support, to confirm the next phase of the market.
