ALGO Technical Analysis Feb 1

ALGO is stuck in a narrow range at the $0.10 level ($0.09-$0.11), and while the downward trend dominates, the RSI declining to 34 signals an oversold opportunity for upside; however, strong resistances and Bitcoin’s decline make both scenarios possible.

Current Market Situation

ALGO is trading at $0.10 with a 3.70% decline over the last 24 hours and continues its downward trend with $53.31M volume. Technical indicators are predominantly giving bearish signals: RSI at 34.17 is approaching oversold territory but momentum is weak, MACD maintains bearish crossover with a negative histogram. Price is trading below EMA20 ($0.12) and the Supertrend indicator highlights $0.13 resistance, confirming the short-term bearish structure. Critical supports are $0.0947 (strength score 75/100) and $0.1027 (61/100), while resistances stand out at $0.1066 (75/100) and $0.1149 (64/100). In multi-timeframe (MTF) analysis, 10 strong levels were identified across 1D/3D/1W timeframes; balanced in 1D (2S/2R), resistance-heavy in 3D (1S/2R) and 1W (1S/4R), indicating the difficulty of an upside breakout. Overall, ALGO is under pressure from Bitcoin correlation but oversold conditions carry potential for local recovery.

Scenario 1: Upside Scenario

How Does This Scenario Unfold?

For the upside scenario, a clear breakout and close above the $0.1066 resistance (strong level) is required first. This breakout strengthens if it tests the short-term EMA20 ($0.12) and creates positive divergence in the MACD histogram. RSI jumping toward 50 and volume increase (above current $53M) serve as confirmation. If 1W resistances (above $0.1149) are surpassed in MTF, momentum builds; Supertrend turning green signals a trend reversal. Bitcoin breaking $78,675 resistance also supports ALGO, as altcoin rallies are typically triggered by BTC recovery. In this scenario, invalidation occurs with a break below $0.0947 support – a close below this level invalidates the entire bullish structure.

Target Levels

First target is $0.1149 (medium-term resistance), followed by $0.13 Supertrend level and final $0.1593 (strength score 31). Reaching these targets aligns with Fibonacci extensions and MTF resistance clusters; risk/reward ratio from current levels is attractive (approximately 1:3). To monitor: Avoid volume-less breakouts and RSI above 70 overbought warnings.

Scenario 2: Downside Scenario

Risk Factors

The downside scenario is triggered by a break and daily close below $0.0947 support (high strength score). This is reinforced by deeper negative momentum in MACD and RSI dropping below 30. Increased volume (bear volume) and new lows below EMA20 confirm trend continuation. In MTF, the 4 resistances in 1W cap upside moves, and if Bitcoin breaks $77,796 support, chain-reaction selling pressure forms in ALGO. If Supertrend’s bearish signal strengthens, liquidity hunting could pull toward $0.1027. Invalidation level is a close above $0.1149 resistance – this invalidates the bearish scenario and signals reversal.

Protection Levels

First protection is the $0.09 range below $0.0947, main target $0.0514 (strength score 22). These levels overlap with historical lows and MTF support clusters; risk/reward here is also balanced (around 1:2). To monitor: Volume spikes on support tests and BTC dominance increase are bearish factors.

Which Scenario to Watch?

In the short term, $0.1066 resistance and $0.0947 support are key triggers; a 4-hour close above $0.1066 confirms bullish momentum, below $0.0947 confirms bearish continuation. Volume profile is critical: +20% increase required for upside, 1.5x current volume in bear volume for downside. RSI divergence (price making lows while RSI higher) is bullish, MACD deepening below zero line is bearish confirmation. Daily candle closes and volatility (ATR increase) accelerate scenario separation. Follow with additional data from ALGO Spot Analysis and ALGO Futures Analysis pages.

Bitcoin Correlation

ALGO has high correlation with BTC (0.85+); BTC is in downtrend at $78,576 with 5.10% decline and Supertrend bearish. If BTC breaks $77,796 support, additional pressure on ALGO accelerates (below $0.0947); breaking $78,675 resistance strengthens ALGO upside scenario ($0.1066 breakout eases). BTC supports at $75,720/$64,655, resistances at $80,708/$83,160 to monitor – BTC dominance increase signals caution for altcoins, recovery creates rotation opportunity.

Conclusion and Monitoring Notes

Both scenarios are valid for ALGO; traders should adjust positions by monitoring $0.1066/$0.0947 pivots. On daily/4-hour charts, prioritize volume, RSI/MACD divergences, and BTC movements. Be patient in low volatility, manage risk with stop-losses in breakouts ($0.0947 below for bullish invalidation, $0.1149 above for bearish invalidation). This analysis is a tool to understand market dynamics – do your own research and regularly check ALGO Spot and Futures pages.