• ALGO slides 1.09% in 24 hours, continuing its weekly 6.05% drop.
• Trading volume plunges nearly 50%, showing weaker market activity.
• Price nears key support between $0.1700–$0.1650, where buyers often emerge.
• Technical signals hint at an early bullish reversal from oversold conditions.

Algorand (ALGO) remains under selling pressure, extending its decline across both daily and weekly timeframes. Over the past 24 hours, the token has dropped 1.09%, while its weekly performance reflects a deeper 6.05% loss.

At press time, the token is trading at $0.1788, accompanied by a sharp 49.88% fall in trading volume to $54.63 million. Its market capitalization stands at $1.57 billion, down 1.08% in the same period, reflecting reduced investor activity and weakening short-term sentiment.

Despite the decline, analysts note that the token is trading inside a clear descending channel on the 2-day chart. While signaling weakness, this structure often precedes significant rebounds when accumulation occurs near lower channel boundaries. Historical data shows, Algorand tends to recover strongly from such phases once selling pressure eases.

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ALGO Key Support Zone and Possible Price Reaction

According to crypto analyst Butterfly, the token chart reveals a clear descending channel pattern, illustrating consistent lower highs and lower lows through 2025. This persistent bearish structure has dominated for several months, but the repeated testing of the lower boundary suggests the current downtrend may be losing momentum.

If the price holds above the $0.1700–$0.1650 range, a short-term rebound could emerge toward $0.22–$0.24, aligning with the upper trendline of the channel. A breakout above this level can speed up the move towards $0.32 and later $0.48–$0.50. In case of a fall through $0.1650, it would disregard this scenario and create room for bigger losses towards $0.1500.

Algorand Indicators Hint at Early Recovery Signs

The Relative Strength Index (RSI) of Algorand at the 4-hour bar is 39.00, indicating poor bull pressure. It is still at a lower level than the neutral 50, but on an ascending slope. This indicates a probable healing process. The RSI at the signal line at 35.84 suggests a careful change in sentiment.

The MACD (Moving Average Convergence Divergence) indicates a bull crossover, as the MACD line has crossed over the signal line. The indication is reinforced by a mildly positive histogram at 0.00061, as early bull pressure is shown. Although values remain near zero, the bull crossover implies rising strength and potential short-term rise in the direction of the price.

Also Read: Algorand (ALGO)  Price Surges 15% This Week, Key Levels to Watch for 2025