In an ideal scenario, whether for trading or long-term positioning, a cryptocurrency that combines three key factors often draws attention: price action within the discount zone (a corrective phase), a sustained bullish market structure, and a clear entry setup. This combination can currently be observed in several assets, but for illustration, Algorand provides a useful case study.

The first step is to place the asset within a broader market context. A practical way to define a trend is by identifying market structures. A bullish structure is characterized by a series of higher lows and higher highs.

Algorand technical analysis

ALGOUSD - 1 Day Time Frame

On the Algorand chart, these points have been highlighted with blue horizontal lines, showing that the price has moved above the May high and subsequently established both a new low and a new high in the structure.

The next step is to apply the Fibonacci tool, with particular focus on the 0.5 retracement level, which divides price action into Premium and Discount zones. Historically, the most favorable long-term entries often occur during corrective phases in the Discount zone.

Algorand price target

The final step is to look for confirmation through a complete entry setup. Analysis on its own is not sufficient; clear criteria are required to define scenarios more precisely.

At present, Algorand has already completed an initial sweep of Sell-Side Liquidity. The remaining factor to watch is whether the daily candle closes above the most recent resistance zone, marked in orange on the chart, which currently defines bearish price delivery.

If this resistance is closed above on the daily timeframe, the buy setup could be confirmed. A protective Stop Loss could be positioned below the current low, while targets may extend to Buy-Side Liquidity levels highlighted on the chart. A particularly notable target is the Trendline Liquidity, representing Stop Loss orders from traders who entered short positions based on a descending trendline.