Algorand (ALGO) price is starting to turn heads again after bouncing off a major support level that’s held strong for years. It’s now pushing up against a key descending trendline that’s been capping price for a long time.
Top analyst Daniel Ramsey shared on X that ALGO is “supported by the key zone and ready to break through the descending resistance.” If it can authoritatively break above that line, it could signal that momentum is reverting to the bulls.
Weekly on the chart, ALGO price does seem to be trying to bounce back, and investors are taking close interest to see if this action happens as other breakouts have in the past, producing strong rallies.
Algorand Price Weekly Support Zone Holds Firm
The ALGO chart shows price action responding positively to a horizontal support range between $0.10 and $0.125. This zone has provided reliable support over multiple market cycles since 2020. The latest weekly candle shows a strong bounce from this level, indicating continued interest from buyers defending this demand area.
This support base also aligns with historical accumulation phases. A clear higher low structure is forming, reinforcing the argument that bulls are gaining control at this level. Maintaining this range could set the stage for a reversal for Algorand price if resistance levels give way.
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Image Source: X/DanielRamsey
Moreover, ALGO is testing a descending trendline that has capped price rallies since early 2023. This is the peak of a falling wedge pattern, and it is usually believed to be a mark of a bullish reversal. The chart also shows that the same pattern developed from mid-2022 to early 2023, which then corresponded with a strong rally after the confirmation of the breakout.
mid-2022 and early 2023, resulting in a strong upward move after breakout confirmation.
Traders are now focused on whether ALGO price can repeat that performance. A close above the trendline, backed by volume, would signal a possible shift in trend and invalidate the sequence of lower highs seen over the past year.
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Algorand Bullish Setup Targets Mid-2022 Supply Zone
A potential breakout from the current structure would bring the $0.45–$0.55 range into focus. This area coincides with a previous supply zone and aligns with the 0.618 Fibonacci extension measured from the last major swing low.
This target range represents a zone of prior consolidation and distribution from 2022. Algorand price movement into this range could reflect broader market acceptance of a bullish shift, particularly if supported by higher time frame momentum.
ALGO Market Structure Supports Reversal Outlook
The combination of a defended support base, falling wedge structure, and bullish higher lows builds a case for potential continuation. While confirmation requires a decisive break and close above descending resistance, current technical conditions suggest a breakout scenario is developing for Algorand price.
As traders await confirmation, ALGO setup offers a rare blend of multi-timeframe confluence, structure, and historical precedent. Price action over the coming days may determine whether this move materializes into the rally outlined in the technical targets.
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The post Algorand Price Just Flipped the Script – This ALGO Chart Pattern Could Trigger a 4x Spike appeared first on CaptainAltcoin.
