Algorand rebounded 7.5% off intraday lows, forming a sharp V-shape recovery as buyers defended the $0.1800 support level.
RSI divergence on the ALGO chart points to fading bearish momentum, with a reversal pattern building above horizontal support.
ALGO’s tight consolidation below $0.1915 suggests a potential breakout if bulls reclaim short-term resistance with volume.
Algorand (ALGO) ended June 6 at $0.1887, gaining +0.25% after a volatile session that saw the price fall to a low of $0.1777 before rebounding. The token peaked at $0.1915 during mid-session, recovering more than 7.5% from the day’s bottom. A key support zone near $0.1800 emerged as a critical battleground, with ALGO showing signs of bullish intent after testing this level early in the day.
Broader forces are at play, with early signals pointing to a shift in market momentum. As traders react to intraday volatility, the short-term outlook hinges on whether the price can sustain above reclaimed support or face renewed pressure.
Bitget Data Shows Textbook V-Shaped Recovery
ALGO opened the session near $0.1889 before quickly breaking below the $0.1800 level amid intense sell pressure. The price fell to $0.1777 in the early hours, triggering a rebound that accelerated after 04:00 UTC. By 17:00 UTC, the asset climbed to $0.1915, forming a sharp V-shaped recovery structure as buyers returned aggressively near intraday lows.
Source: Bitget
Closing at $0.1887, ALGO ended the session above its open, maintaining recovery momentum into the final hours. Bitget data shows a daily high of $0.1917 and a 24-hour volume of $87.6 million, accounting for 5.39% of its $1.62 billion market cap. The chart reflects a clean recovery from oversold conditions, with the price now consolidating just under short-term resistance.
RSI Divergence Signals Reversal Potential
A detailed breakdown from Sjuul | AltCryptoGems highlights a bullish Three-Drive Pattern forming on the ALGO chart. Price action shows repeated rebounds from a strong horizontal support zone, with Fibonacci alignment reinforcing the harmonic structure. The setup suggests that momentum could shift if the pattern completes and breaks out from compression.
Source: Sjuul | AltCryptoGems
According to market analyst Sjuul, ALGO’s RSI shows a bullish divergence—price making lower lows while RSI prints higher lows. This classic momentum shift often precedes trend reversals, especially as RSI approaches oversold levels near 30. Traders watching this zone may anticipate a bounce if the divergence plays out.
Tight Consolidation Precedes Breakout Attempt
ALGO remains compressed within a narrow range following earlier volatility. Recent price pullbacks are shallower and more controlled, signaling possible exhaustion of bearish pressure. For the reversal to confirm, the token must break above its most recent lower high and hold above $0.1915.
The price structure mirrors earlier market cycles where prolonged consolidations gave way to rapid expansions. If history repeats, a break above $0.1915 could trigger a move toward $0.2000. Until then, the sentiment among traders is split—some expecting a breakout, others watching for another pullback before momentum resumes.
