Date: Thu, July 24, 2025 | 07:56 AM GMT
The cryptocurrency market is taking a dip after a strong multi-week rally, with Ethereum (ETH) retreating to $3,575 from a recent high of $3,875 — marking a 3% daily decline. This pullback has impacted several top altcoins, including Algorand (ALGO).
ALGO has slipped 11% today, trimming its monthly gains to 41%. However, under the surface, a potentially bullish fractal pattern is developing — one that closely resembles the breakout structure recently seen in SEI.
ALGO Mirrors SEI’s Breakout Setup
A comparison of ALGO and SEI’s daily charts reveals a nearly identical price structure forming.
After breaking out from a textbook falling wedge — a well-known bullish reversal pattern — SEI reclaimed its 200-day moving average (MA), initiating a powerful rally. After briefly consolidating in a yellow resistance box, it corrected nearly 25%, then bounced strongly off its 200-day MA to deliver a further 56% upside move.
Now, ALGO appears to be tracing a similar trajectory.
Like SEI, ALGO recently broke out of its falling wedge pattern and pumped into the yellow resistance range after reclaiming its 200-day MA. It is now correcting — potentially heading back toward its 200-day support at $0.2414. This phase mirrors SEI’s consolidation before it made its explosive second leg higher, suggesting that ALGO might be setting up for a similar bounce.
What’s Next for ALGO?
If this fractal plays out, ALGO may dip slightly lower to test the $0.2414 level (its 200-day MA), where a bounce could begin. A confirmed breakout above the yellow resistance zone could then open the path toward $0.38 — implying a potential 58% rally from the support zone.
As with any fractal-based setup, confirmation is key. Traders should closely monitor the 200-day MA and watch for price strength above the resistance band before entering long positions.
Disclaimer: This article is for informational purposes only and not financial advice. Always do your own research before making investment decisions in cryptocurrencies.
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