As the cryptocurrency market undergoes a correction phase, ALGO appears poised for a potential rebound, supported by an encouraging technical signal. Stay tuned for a closer look at this opportunity worth monitoring closely.
The cryptocurrency market is currently experiencing a period of turbulence, with significant declines across key assets like Ethereum (ETH), which has dropped 9% in a week, reaching $4,175. This downward trend has also impacted major altcoins, including Algo.
Although it shows an 11% decline over the past week, a deeper analysis reveals the discreet formation of a bullish harmonic pattern on its daily chart. This technical signal hints at a potential rebound for this resilient cryptocurrency.
On the daily chart, we can observe the formation of a Gartley harmonic pattern. While the term “Gartley” typically suggests a bearish scenario, the final stage of this model (the CD leg) often triggers a bullish continuation when the price extends into the Potential Reversal Zone (PRZ).
The pattern began at point X ($0.2236), dropped to point A, rallied back to point B, then corrected towards point C around $0.2372. Since then, ALGO has started to show signs of resilience, now trading around $0.2433. While confirmation of a sustainable rebound is still developing, this represents an encouraging signal for investors.
If buyers defend the support at C ($0.2372) and push the price above the 100-day moving average ($0.2567), it could reach the Potential Reversal Zone, between $0.3097 and $0.3331. This level corresponds to the Fibonacci extension and constitutes a strategic area for a potential rebound.
Conversely, failure to maintain $0.2372 would weaken the technical structure, delaying confirmation of the CD leg and exposing ALGO to further temporary declines. In this volatile market context, the Gartley harmonic formation and solid support levels make it a cryptocurrency worth watching, offering interesting bullish potential for attentive investors.
This cryptocurrency offers interesting upside potential for attentive investors. Take advantage of ALGO now on Bitget:
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