Algorand’s ALGO token is consolidating within a falling wedge pattern, a technical formation often associated with potential bullish reversals. Analyst Jonathan Carter notes early recovery signals from momentum indicators like the RSI and MACD, suggesting weakening bearish pressure. A confirmed breakout above resistance could trigger a staged recovery with targets up to $0.49, though failure to hold support may extend the current downturn.
The cryptocurrency Algorand (ALGO) is currently trading inside a falling wedge pattern on its 3-day chart, a structure technical analysts frequently link to potential bullish reversals. According to crypto analyst Jonathan Carter, the price action is compressing toward the pattern’s lower boundary where support has held.
According to Carter, early signs point to weakening bearish momentum and gradual stabilization as buyers absorb selling pressure. If a breakout occurs, potential upside targets are identified at $0.100, $0.145, $0.190, $0.250, $0.320, and $0.490. A confirmed move above resistance with rising volume would strengthen bullish prospects, while a failure to hold support may invalidate the setup.
Data from TradingView shows ALGO faces pressure below major Exponential Moving Averages, with the 20-period EMA at $0.08351 and the 50-period at $0.08562. The asset’s long-term trend remains bearish, characterized by a series of lower highs and lower lows.
Price action shows stabilization near the lower Bollinger Band at approximately $0.07945 following a sharp decline. The Relative Strength Index (RSI) has recovered to 39.53 from an oversold reading of 32.42, indicating a resumption of buying interest.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, with its histogram turning from red to green. This change suggests selling pressure is weakening, though both MACD lines remain below the zero level.
