ALGO tests key support as bulls protect falling channel. The bullish momentum and Elliott Wave alerts of further declines in the Algorand price.
ALGO is at a crossroads, with the token critical support levels. The next direction of Algorand is contested by bulls and bears.
Source: Butterfly
Butterfly Chart on X shows that ALGO tries to recover. The price rebounds off the lower line of the descending channel. On the daily chart, Bulls stand firm in this support.
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Momentum Shifts as Support Holds Strong
The technical image indicates the accumulation of bullish momentum. Butterfly Chart records the possibility of a buy-back soon. Bulls seem to have ALGO set to shoot towards $0.23.
This zone is monitored by short-term traders. The downward channel support is important. A long-term bounce would provoke a powerful rise.
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Elliott Wave Warns of Deeper Danger Ahead
Morecryptoonl on X offers a long-term opposing perspective. ALGO is proceeding along a downward price trajectory. The chart can soon challenge the lows of August 2024.
Source:Morecryptoonl
Elliott Wave shows worrying trends. The structure demonstrates a three-wave movement into highs in 2021. This was accompanied by a five-wave drop to August 2023 lows.
The other three-wave upward movement reached its December 2024 peaks. That summit was the beginning of the current decline. Morecryptoonl cautions that the market may see a third wave drop.
Critical Levels Define ALGO’s Next Move
The downside target is 8.7 cents to 9.7 cents. This area includes the 2023 and 2024 lows in August. A fall below would bring about new lows.
The bullish scenario has its conditions. ALGO needs to overcome the resistance at 17.6 cents to 27 cents. Then it has to re-test the December 2024 highs.
Morecryptoonl points out that caution is still necessary. There is no established local minimum yet. ALGO is a falling knife until there is evident momentum switching.
The cryptocurrency is at a crossroads. Bulls protect on highs, whereas bears aim at lower lows. These levels are monitored by traders to see the next major move of ALGO.
