ALGO Technical Analysis Feb 10

ALGO is approaching the oversold region with RSI at 36.73 level while MACD’s negative histogram confirms the downward momentum; short-term trend is weak but critical supports are approaching and a potential rebound buying signal can be sought.

Trend Status and Momentum Analysis

ALGO’s current price is trading at the 0.10 dollar level and has recorded a 1.96% decline in the last 24 hours. The daily range is stuck between 0.09-0.10 dollars, with volume at moderate levels of 19.66 million dollars. The overall trend direction continues downward, the Supertrend indicator gives a bearish signal, and the 0.12 dollar resistance forms a strong barrier. Momentum indicators emphasize short-term weakness, while 9 strong level confluences are observed across multiple timeframes: 2 supports/3 resistances on the 1-day chart, 1 support/1 resistance on the 3-day, and 2 supports/3 resistances on the weekly. This structure shows that ALGO is trapped in a down channel and momentum remains in favor of sellers. Volume partially confirms the price decline but is not in an extremely low-volume drop, which may indicate an accumulation phase. Bitcoin’s own downtrend further suppresses momentum in altcoins like ALGO.

RSI Indicator: Buy or Sell?

RSI Divergence Analysis

RSI (14) is currently at 36.73 and positioned in the neutral-bearish zone, quite close to the 30 oversold level. No regular bearish divergence is observed recently; as price makes new lows, RSI is also testing similar lows, indicating healthy downward momentum. However, a hidden bullish divergence potential may be starting to form: as price sags toward 0.09 dollars, RSI is holding at the bottom, implying weakening sellers and potential rebound. On the daily chart, RSI continues to dip below the 40 level, but weekly RSI has stabilized around 45, showing that long-term momentum has not fully depleted. Divergence confluence is not yet clear, so RSI should not be isolated as oversold; buy signals remain weak without volume confirmation.

Overbought/Oversold Regions

RSI at 36.73 is approaching oversold (below 30), a level that has triggered rebound buys in the past. The current position may signal seller exhaustion, but false recovery risk is high in a bearish trend. A jump toward the 50 level would be the first confirmation for momentum shift. Multi-timeframe RSI confluence balances between daily oversold and weekly neutral, supporting short-term bottom hunting.

MACD Signals and Histogram Dynamics

MACD is in bearish position, signal line below the MACD line, and histogram expanding in the negative zone. This shows strengthening downward momentum; histogram bars have lengthened recently, confirming increased seller pressure. The crossover below the zero line has already occurred, and room for a new bearish signal is narrowing. On the daily chart, MACD histogram is around -0.005, deeper than previous bottoms, emphasizing downward momentum acceleration. However, if the histogram expansion rate slows, contraction (squeeze) could herald bullish divergence. Weekly MACD is neutral, not giving warning signals for the long-term trend. Overall, MACD supports the current downtrend, and buying should not turn until 0.1046 resistance is broken.

EMA Systems and Trend Strength

Short-Term EMAs

ALGO price is trading below EMA20 (0.11 dollars), clarifying short-term bearish bias. The ribbon squeeze between EMA10 and EMA20 shows weak momentum; as long as price stays below the ribbon, selling pressure continues. EMAs did not flatten during the recent decline, gaining downward slope, this dynamic favoring sellers in measuring trend strength.

Medium/Long-Term EMA Supports

EMA50 forms resistance around 0.12, while EMA200 provides long-term support above 0.15. Ribbon dynamics show bearish squeeze in the medium term; EMAs are stacking downward and trend strength is in the decline direction. The 0.0928 support is near EMA21; if broken, it accelerates toward EMA50. Long-term EMAs are not yet upward sloping, momentum confluence protects the downtrend.

Bitcoin Correlation

Bitcoin is in a downtrend at 69,721 dollar level with a 2.19% decline, Supertrend bearish, and supports in the 68,341-62,910 range. As BTC dominance rises, altcoins like ALGO are under pressure; ALGO, with high correlation coefficient, should wait for BTC to test 70,936 resistance. If BTC sags below 68k, ALGO’s 0.08 supports come into play; above BTC 77k, an altcoin rally could trigger. Current BTC weakness limits ALGO momentum – monitor BTC levels for ALGO Spot Analysis and ALGO Futures Analysis.

Momentum Outcome and Expectations

Momentum indicators show bearish confluence on ALGO: although RSI 36.73 oversold approach gives a bottom signal, MACD negative histogram and price below EMA confirm the decline. Volume at 19M partially validates the drop, divergences are weak. If critical support 0.0928 (75/100 score) holds, rebound buying could test 0.1046 resistance (70/100), bullish target 0.1684. Otherwise, slip to 0.0807 (72/100) and bearish 0.0345 possible. 9 MTF confluence levels warn of volatility: watch RSI to 50, MACD histogram contraction. Trend strength is weak, short-term selling momentum dominates but oversold RSI gives long-term recovery hope. If volume increases and BTC recovers, confluence for change forms.