ALGO Technical Analysis Feb 22

ALGO is trading in a tight range around $0.09 and RSI at 34.85 is approaching the oversold region while MACD shows a positive histogram; this situation makes both bullish and bearish scenarios possible, as there is potential for a resistance breakout despite the short-term bearish Supertrend.

Current Market Situation

ALGO’s current price is at the $0.09 level and is under downtrend dominance with a -4.21% drop in the last 24 hours. RSI at 34.85 is positioned near oversold, MACD gives a bullish signal with a positive histogram but short-term bearish pressure continues as the price remains below EMA20 ($0.10). Supertrend is giving a bearish signal and $0.11 resistance forms a strong barrier. Critical support is at $0.0807 (69/100 score), resistances are concentrated at $0.0913 (67/100), $0.0884 (61/100), and $0.1012 (61/100) levels. Multi-timeframe (MTF) analysis detected 8 strong levels in 1D (1S/4R), 3D (1S/0R), and 1W (1S/3R) timeframes, indicating the market is at a decision point. Volume is low at $12.45M, volatility is limited but a breakout is expected.

Scenario 1: Bullish Scenario

How Does This Scenario Occur?

For the bullish scenario, a clear breakout above $0.0913 resistance and a close above it is required first. Once this level is surpassed, if the intermediate resistance at $0.0884 is tested and broken, momentum increases; expansion of the MACD histogram and RSI rising above 50 provide confirmation. Breaking EMA20 ($0.10) could reverse the Supertrend signal. Volume increase and BTC stability/stabilization can trigger this scenario. In MTF, sequential breaks of R levels in the 1W timeframe (e.g., $0.1012) signal a broader rally. Invalidation of this scenario: drop below $0.0884 and break of $0.0807 support.

Target Levels

First target is $0.1012 (61/100), followed by $0.1132 (25 score) as the main target. In more optimistic conditions, the $0.12-$0.13 region is possible according to Fibonacci extension levels, but BTC resistance above $68k is required. Risk/reward ratio calculated from current levels appears attractive around 1:2, but it should always be managed with stop-loss.

Scenario 2: Bearish Scenario

Risk Factors

The bearish scenario is triggered by a drop below the intermediate support at $0.0884 and break of the main support at $0.0807. If the Supertrend bearish signal strengthens, MACD histogram turns negative and RSI falls below 30. Low-volume selling and BTC dropping below $66,991 increase pressure on altcoins. In MTF, 1D/3D support breaks (1S strong) can create a chain reaction. Invalidation of this scenario: strong close above $0.0913 and volume increase.

Protection Levels

First protection at $0.0807 (69/100), on breakout $0.0570 (22 score) as main target. In a deeper correction, the psychological $0.05 region should be monitored. Holding at these levels can revive the rally, so traders should base position sizing on these invalidations.

Which Scenario to Watch?

Decision point is $0.0913 resistance and $0.0807 support; volume surge and candle closes are critical for confirmation. For bullish, watch MACD/RSI rise; for bearish, Supertrend continuation. Trendline breaks on daily/4-hour charts give early warnings. Expect volatility increase in both scenarios – don’t rush decisions, get confirmation from multiple timeframes.

Bitcoin Correlation

ALGO is a highly correlated altcoin to BTC; BTC is in downtrend at $67,470 level and Supertrend is giving a bearish signal. If BTC breaks $66,991 support, ALGO below $0.0807 accelerates; if BTC surpasses $68,046 resistance, ALGO bullish scenario is supported. Rising BTC dominance triggers altcoin selling – be cautious on ALGO longs until BTC drops below $64,357, above $70k becomes a bull trigger. Main BTC levels: Supports $66,991/$64,357/$60,000; Resistances $68,046/$70,588/$74,487.

Conclusion and Monitoring Notes

ALGO is at a critical threshold; $0.0913 breakout signals upside, $0.0807 breakout signals downside. Monitoring list: Volume, RSI/MACD divergences, BTC movements, and MTF levels. For detailed tracking, visit ALGO Spot Analysis and ALGO Futures Analysis pages. Traders should be prepared for every scenario with their own risk management – the market can change at any moment.