The crypto market continues to consolidate, with Ethereum and Algorand facing pressure. ALGO is defending a key support at $0.224 amid a fragile trend. A bullish breakout could lead to $0.365, but downside risks linger.
Although ALGO has recorded a weekly decline of 6%, its chart now displays a potential breakout signal that could determine its next major move. From a technical perspective, ALGO is consolidating within a descending triangle pattern, a formation generally considered a bearish continuation structure.
So far, ALGO has managed to maintain its key support around $0.224, a level that also coincides with its 100-day moving average at $0.2259. Despite repeated tests, buyers have consistently responded at this level, suggesting a possible accumulation phase. Currently, he is trading at $0.2307, showing some resilience even within this increasingly tight structure.
If bulls manage to defend the current support and trigger a breakout above the descending trendline, momentum could accelerate rapidly, targeting $0.3650 a potential increase of 58% from current levels. Such a breakout would confirm ALGO’s strength and could spark renewed buying interest.
Conversely, if the $0.2240 support gives way, the bearish scenario would take over. In this case, ALGO could revisit the lower support region around $0.1720, extending the decline.
While the short-term outlook appears promising, it’s important to always conduct your own research before investing in cryptocurrencies.
This cryptocurrency offers interesting upside potential for attentive investors. Get your hands on ALGO now on Pionex:
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