ALGO Technical Analysis Jan 28

ALGO’s current market structure is maintaining the downtrend; while recent swing lows are holding, above $0.1254 is critical for upside BOS.

Market Structure Overview

ALGO is consolidating in a narrow range at the $0.12 level ($0.12 – $0.12) and showing a 24-hour +0.82% change. From a market structure perspective, a clear downtrend appearance dominates: the bearish structure characterized by Lower Highs (LH) and Lower Lows (LL) pattern continues. Multi-timeframe (MTF) analysis detects 13 strong levels across 1D/3D/1W timeframes (1D: 3S/3R, 3D: 1S/1R, 1W: 2S/4R). Supertrend is giving a bearish signal, not above EMA20 ($0.12), RSI at 48.32 is neutral, MACD with negative histogram is bearish. The structure remains intact by holding the recent swing low at $0.1219 (score 73/100) but is locking up against the $0.1254 resistance (score 87/100). This meets the classic LH/LL downtrend definition: each new high is lower than the previous high, each low is lower than the previous low. For trend change, upside BOS (Break of Structure) condition: close above $0.1254 to form Higher High (HH). Downside risk is a break of $0.1219 confirming LL.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend, Higher Highs (HH) and Higher Lows (HL) pattern is required; this is absent in the current structure. Potential bullish signals: holding of $0.1219 swing low (score 73/100), RSI turning up from 48, and 0.82% 24h gain. However, there is resistance against EMA20 ($0.12). For HH formation, first BOS above $0.1254 (recent LH, score 87/100), then $0.1410 target. This would be seen as Change of Character (CHoCH): the first bullish structural break to exit the downtrend. For now, no strong HH/HL, just a local HL attempt ($0.1219).

Downtrend Risk

Downtrend confirmed with LH/LL: recent swing high $0.1254 lower than previous $0.1410 (LH), swing low $0.1219 lower than previous levels (LL). Supertrend resistance at $0.14, MACD bearish. Risk: break of $0.1219 for new LL, then $0.1159 target (score 70/100). This BOS confirms downtrend continuation. In MTF, 1W shows 4R/2S dominance, bearish momentum high. $0.1051 (score 60/100) is critical support; break opens $0.0795 bearish target.

Structure Break (BOS) Levels

Bullish BOS: daily close above $0.1254 (recent swing high) breaks LH, opens HH potential, and clears the path to $0.1410. This invalidates the downtrend structure and gives a CHoCH signal. Bearish BOS: close below $0.1219 (recent swing low) confirms LL, opens path to $0.1159. Main invalidation level for bullish is $0.1410 retest and hold; for bearish, break of $0.1051. MTF alignment is critical: 1D BOS must align with 3D/1W. Current $0.12 is within range; BOS awaited.

Swing Points and Their Importance

Recent Swing Highs

$0.1254 (score 87/100): Most critical resistance, defines LH. This level is the main resistance of the bearish structure; BOS above shifts to bullish. $0.1410 (score 75/100): Medium-term resistance, previous LH. $0.1633 (score 61/100): Long-term target for bullish continuation. These swing highs set the ceiling of the downtrend; no HH without break.

Recent Swing Lows

$0.1219 (score 73/100): Main support, HL attempt. If held, local bullish bias; break is bearish BOS. $0.1159 (score 70/100): Next support, LL risk. $0.1051 (score 60/100): Critical MTF support, panic on break. Swing lows form the base of the structure; LL series extends the downtrend.

Bitcoin Correlation

BTC at $89,371 (+1.26%) in downtrend, supertrend bearish. Main supports $88,311 / $85,995; resistances $89,381 / $91,335. ALGO highly correlated with BTC; BTC break of $88,311 triggers altcoin liquidation, dragging ALGO to $0.1159. BTC above $91,335 sparks alt rally: ALGO $0.1410 BOS opportunity. BTC dominance high, supertrend alignment bearish caution: independent ALGO move difficult. Watch BTC key levels: down drags ALGO to $0.1051, up to $0.1633.

Structural Outlook and Expectations

Current structure bearish intact (LH/LL), $0.12 range consolidation. Bullish outlook: $0.1254 BOS for CHoCH, $0.1633 target (score 31). Bearish: $0.1219 break, $0.0795 target (score 22). Educational note: Market structure read with HH/HL (bullish) vs LH/LL (bearish); changes with BOS. For trading, wait for MTF alignment and swing confirmation. No news, stay technical-focused. Check ALGO Spot Analysis and ALGO Futures Analysis.