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- Algorand breaks its downtrend, hitting resistance at $0.1470 and targeting consolidation within the $0.1056-$0.1244 support zone.
- ALGO’s $0.12-$0.14 support zone holds strong as buyers step in, with resistance at $0.16 in sight for upward momentum.
- Potential resistance targets at $0.19, $0.21, and $0.25 could drive growth if ALGO maintains support and buying interest persists.
Algorand has broken out of its prolonged downward trend versus Tether on Binance, indicating a potential reversal after months of adverse pressure. ALGO just broke over the critical resistance level at $0.1470 and began a brief upward trend. The price presently seems poised to correct within a support area, between $0.1056 and $0.1244, after this breakout, before continuing on its upward track.
Breaking the Downtrend
The chart highlights Algorand’s price action since April, showing a steep decline marked by a consistent downtrend line. This line previously acted as resistance, pressuring ALGO’s price to lower levels. However, in early November, the price successfully broke this trend line, shifting the market sentiment. After this breakthrough, ALGO briefly tested resistance at $0.16 before experiencing slight selling pressure, leading to a minor pullback.
Source: Tradingview
Moreover, a critical support area between $0.12 and $0.14 has consistently served as a demand zone. Buyers have repeatedly entered this range, preventing further price declines. This strong support, highlighted in green on the chart, was tested in September and has held firm once again, signaling buyer confidence.
Future Price Targets and Key Resistance Levels
The analysis suggests a consolidation period within the green support zone, possibly leading to another breakout. Besides, three notable resistance levels are visible on the chart at $0.19, $0.21, and $0.25. These levels represent significant barriers, and surpassing each could fuel additional buying momentum.
If Algorand maintains support within the green zone, the price may stabilize before climbing to these higher targets. The projected price path on the chart indicates an upward rally through each resistance level. However, if selling pressure re-emerges, the price could retest the support zone, presenting a critical area for future buying interest.
Additionally, an ascending green trendline from August supports Algorand’s price, aligning with a longer-term bullish trajectory. This line intersects with the green support zone, reinforcing it as a crucial level where buyers are likely to act.