Algorand (ALGO) has struggled amid the broader market downturn, trading only about 15% above its all-time low in late March. The altcoin is now attempting to recover, with several technical and on-chain signals suggesting that a bullish outlook could emerge if key levels hold.
Can ALGO maintain its bullish structure?
Algorand’s chart structure continued to favor a potential rebound.
On the high, price remained in two bullish formations: a symmetrical triangle and a cup-and-handle pattern. These two trends have historically preceded recoveries.
However, Algorand (ALGO) would need to break above the descending resistance line to confirm either pattern.
In the short term, ALGO entered a key supply zone, where sellers stepped in and triggered the latest pullback. The $0.092 level remains a critical support zone.
If buyers defend it, ALGO could rebound and retest overhead resistance.
However, a rejection could send the asset back towards the lower support of the symmetrical triangle. A fall below $0.088 would invalidate both bullish structures and increase the risk of further decline.
What do the indicators show?
The bearish scenario has not yet fully developed, as technical indicators continue to signal underlying strength.
The Moving Average Convergence Divergence (MACD) has recently formed a golden cross, with the MACD line moving above the signal line. This crossover often reflects a strengthening of purchasing dynamics.
Additionally, both lines moved closer to positive territory. A move above zero could strengthen the bullish outlook.
Meanwhile, the Relative Strength Index was hovering near the neutral zone. The indicator suggests that momentum remains balanced, leaving ALGO without a clear directional bias.
As a result, the market remained vulnerable to either an attempted recovery or a further downturn.
Are Algorand whales controlling the trend?
Much of ALGO’s near-term outlook could depend on whale activity.
Currently, whales dominate the delta between whales and retailers, indicating that the largest holders remain the main drivers of market activity. This dynamic suggests that buying pressure may remain limited unless whale participation increases further or retail demand strengthens.
On the other hand, Spot Netflows highlighted persistent selling pressure.
Over the past 15 days, the market has seen $1.75 million in net outflows following a larger sell-off of $29.23 million. Algorand continued to show early signs of recovery. However, whale activity and defense of key support levels remained critical to sustaining any upward movement.
Final summary
- ALGO remained above a critical support zone between $0.092 and $0.088.
- The MACD has formed a golden cross, suggesting that buying strength may return.
