ALGO Technical Analysis Feb 5

ALGO is trading at the $0.09 level with a 13.37% drop in the last 24 hours and is at a critical turning point with oversold RSI (29.10); an unstable market structure exists that carries both bounce potential from strong supports and breakdown risk.

Current Market Situation

ALGO/USD is consolidating around $0.09 while short-term downtrend dominance persists. Price is trading below EMA20 ($0.11) and the Supertrend indicator is giving a bearish signal, with resistance concentrated at $0.12. RSI at 29.10 is in oversold territory, but the MACD histogram is negative and momentum is weak. 24-hour volume is at a medium level of $68.81M, with the recent range stuck between $0.09-$0.10. In multi-timeframe (MTF) analysis, 8 strong levels were detected across 1D/3D/1W timeframes: 1D shows 1 support/3 resistances, 3D shows 1S/1R, 1W shows 2S/2R distribution. Critical support at $0.0877 (score 79/100), resistances at $0.0937 (73/100), $0.0997 (68/100), and $0.1101 (65/100). The market remains bearish despite oversold conditions; traders should monitor these levels to track scenario divergence. Detailed data can be accessed from the ALGO Spot Analysis and ALGO Futures Analysis pages.

Scenario 1: Bullish Scenario

How Does This Scenario Occur?

For the bullish scenario, a clear break and close above the $0.0937 resistance is required first. Once this level is surpassed, RSI divergence formation and MACD histogram approaching the zero line would support momentum. With increased volume, a move toward $0.0997 and $0.1101 resistances could follow; crossing EMA20 ($0.11) would confirm a short-term trend reversal. Supertrend flipping to bullish and a strong green close on the 1D candle would strengthen the scenario. Rebound potential from oversold RSI is high, but an altcoin rally may remain limited without BTC stabilization. Traders should monitor the hold of $0.0877 support as the invalidation criterion – a drop below this level would invalidate the upside.

Target Levels

First target $0.1101 (previous EMA20 and MTF resistance), followed by $0.12 Supertrend level. With strong momentum, $0.1523 is the main target (score 31), aligned with Fibonacci extension and weekly resistance. Risk/reward ratio is attractive when calculated from current levels; for example, entering at $0.09 with stop at $0.0877 yields R/R around 1:2.5. In this scenario, upward preparations can be made for ALGO spot positions, while leveraged longs on futures can be evaluated after resistance breakout.

Scenario 2: Bearish Scenario

Risk Factors

The bearish scenario is triggered by a break of $0.0877 support; this level (score 79/100) is the strongest support in MTF and should be confirmed by increased volume and a red candle close. A new low in MACD and lower low in RSI would reinforce bearish momentum. Distance from EMA20 continues while Supertrend remains bearish, with general market fear (BTC downtrend) pressuring altcoins. If volume spikes downward, cascading sales accelerate. For invalidation, monitor a return to $0.0937 – a close above this level weakens the downside.

Protection Levels

First protection after $0.0877 breakout, then descent to next MTF supports: around $0.07 as intermediate level, main target $0.0354 (score 21, aligned with monthly low). Fibonacci retracement and 1W supports back this target. For short positions from $0.09, stop above $0.0937, R/R near 1:3. ALGO futures traders can use these levels for leveraged shorts, while on spot, support tests should be awaited after sales.

Which Scenario to Watch?

Divergence clarifies in the $0.0877-$0.0937 range: Watch for volume + RSI rebound on upside breakout (bull trigger), absence of MACD divergence + red volume on downside breakout (bear trigger). Daily closes are critical; 4H EMA crossovers provide early warnings. Volatility is high in both scenarios, so traders should manage risk with position sizing and stop-losses. Monitor market news flow (ALGO ecosystem updates) and overall crypto sentiment.

Bitcoin Correlation

ALGO shows high correlation with BTC (especially in downtrends); BTC at $63,449 with 13.36% drop is giving a bearish Supertrend signal. If BTC loses $62,345 support, extra pressure forms on ALGO, with a drop below $59,260 accelerating $0.0877 breakdown. Conversely, a BTC bounce to $66,335 resistance supports ALGO’s bull scenario. Rising BTC dominance crushes altcoins, so traders should prioritize BTC supports ($62,345, $59,260) – ALGO’s independent movement is limited.

Conclusion and Monitoring Notes

ALGO at a critical juncture: Oversold conditions offer bull rebound chance, but bearish technicals dominate. Key monitoring points: $0.0937 breakout (bull), $0.0877 breakout (bear), RSI above/below 30 divergence, MACD histogram zero line cross. BTC movements are decisive; weekly candle closes confirm scenarios. Traders should use levels according to their risk tolerance, tracking current data on spot and futures platforms. This analysis is a tool to understand market dynamics – shape your decisions with technical + fundamental data.