$ALGO 11.4% 24-hour price surge reflects technical momentum and market repositioning after Tether’s USDT phase-out announcement, with traders focusing on bullish chart patterns.
Technical breakout above key resistance levels ($0.22–$0.24)
Market recalibration after Tether’s Algorand USDT sunsetting
Altcoin rotation amid improving crypto-wide sentiment
Deep Dive
1. Technical Context
ALGO broke above its 7-day SMA ($0.196) and 200-day EMA ($0.208) with a bullish MACD crossover (histogram at +0.0057). The RSI-7 hit 83.28 (overbought), signaling short-term speculative buying. Traders targeted Fibonacci retracement levels ($0.215–$0.24) after a 38.6% 7-day rally, with liquidation clusters near $0.22 acting as accelerants.
2. Market Dynamics
Tether’s 12 July announcement to freeze Algorand-based USDT by 1 September 2025 initially raised concerns, but the $842k USDT exposure on Algorand proved negligible (<0.001% of Tether’s $159B supply). Markets interpreted the news as a non-event, shifting focus to Algorand’s ISO 20022 readiness and low-fee ecosystem.
Conclusion
ALGO’s rally combines technical momentum with reduced stablecoin-related overhang, though RSI overextension suggests consolidation risks. Will bullish altcoin rotation sustain ALGO’s breakout if Bitcoin dominance continues slipping below 63.6%?