- Algorand (ALGO) has dropped 6% weekly and is forming a descending triangle pattern on its daily chart, typically viewed as a bearish continuation structure.
- ALGO is currently holding key support around $0.2240, which aligns with the 100-day moving average at $0.2259, with buyers consistently stepping in at this level.
- A breakout above the descending trendline could target $0.3650, representing a potential 58% rally from current levels.
- If the $0.2240 support fails, ALGO could drop to around $0.1720, confirming the bearish scenario.
Date: Fri, Sept 05, 2025 | 06:20 AM GMT
The cryptocurrency market is continuing its choppy moves as Ethereum (ETH) hovers around $4,300, cooling off from its recent high of $4,954 — a drop of more than 12% in just weeks. This weakness has spilled over into major altcoins, including Algorand (ALGO).
ALGO has marked a 6% weekly drop, but more importantly, its chart is now flashing a potential breakout signal that could decide its next big move.
Descending Triangle in Play
On the daily chart, ALGO has been consolidating inside a descending triangle pattern — a formation typically viewed as a bearish continuation structure, where lower highs compress against a flat support zone until a breakout occurs.
So far, ALGO has managed to hold its key support around $0.2240, which also aligns with the 100-day moving average at $0.2259. Despite repeated retests, buyers have consistently stepped in at this level, suggesting that accumulation may be taking place. Currently, ALGO trades at $0.2307, showing resilience even within the tightening structure.
This setup places ALGO right in the support of the triangle, where a decisive move — either up or down — is increasingly likely.
What’s Next for ALGO?
If bulls manage to defend the current support and force a breakout above the descending trendline, momentum could pick up quickly, targeting $0.3650 — a potential 58% rally from current levels. Such a breakout would confirm strength and may attract new buying interest into ALGO.
On the flip side, if the $0.2240 support fails, the bearish thesis would come into play. In that case, ALGO could revisit the lower support region around $0.1720, extending the downside.
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