📊 Technical Analysis Overview:
The Algorand (ALGO) / Tether (USDT) pair has shown a notable technical development by successfully breaking above a medium-term descending trendline that has acted as resistance since early 2025.
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🔍 Pattern & Structure:
A clean breakout above the descending trendline (yellow sloped line) indicates a potential shift in trend from bearish to bullish.
Price is currently undergoing a retest of the breakout zone, aligning with the Fibonacci retracement levels 0.5 ($0.2451) and 0.618 ($0.2273).
The yellow horizontal zone ($0.25-$0.29) has been a significant support/resistance flip zone, showing strong historical reaction throughout 2024 and early 2025.
A higher high and higher low structure is starting to form — an early signal of a potential bullish reversal.
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📈 Bullish Scenario:
If the price holds the support zone between $0.2451 and $0.2273, we could see a continuation of the upward move toward the following resistance levels:
$0.2909 (current minor resistance)
$0.3187
$0.3500
$0.3871
Mid-term targets: $0.4936 and $0.6106
A daily or 2D candle close above $0.3187 with strong volume would confirm a bullish continuation.
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📉 Bearish Scenario:
On the other hand, failure to hold above the $0.2451-$0.2273 support zone could lead to a renewed bearish move with potential targets at:
$0.1900 (weekly historical support)
$0.1500
Extreme support: $0.0938 (2024 cycle low)
A break below $0.2273 would invalidate the breakout and may signal a bull trap.
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📌 Summary:
ALGO is at a key inflection point. The current pullback could be a healthy correction after a breakout or a failed retest. Watch for price action and volume reaction near $0.2451-$0.2273 to confirm the next move.
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