Following the impulsive decline in early October, several key technical parameters have been monitored to assess whether cryptocurrencies could extend their corrections or begin preparing for potential bullish reversals.

In the case of Algorand (ALGO), recent price developments appear to confirm one of these key scenarios, suggesting that the market may be positioning for renewed upward momentum.

Algorand technical analysis

ALGOUSD - 1 Day Time Frame

The potential for a bullish setup is supported by the conditions currently present on the chart. This setup generally includes two main components: the selection of sell-side liquidity and a decisive close above the key resistance zone, which in this case was established on the daily timeframe during the latest corrective phase.

During the following impulsive bullish movement, the price also managed to close above the first bearish candle that initiated the most recent wave of downside delivery. This alignment of factors strengthens the overall technical structure.

Algorand price target

Taken together, these signals could confirm the validity of a potential bullish setup, as all core entry parameters appear to have been met. Market participants monitoring this scenario could view this year’s high as a potential target area, representing a possible appreciation of more than 180% from the current price level.

Appropriate risk management remains essential. A protective Stop Loss could be placed below the internal low marked on the accompanying chart. For reference, the chart also highlights the key elements — the orange zone (now acting as support), the sell-side liquidity sweep, and the Change in State of Delivery (CISD) indicated by the blue horizontal line.

Lastly, if price closes below the orange support zone on the daily timeframe, it could suggest that bullish momentum is weakening. In such a case, a partial position reduction may be considered, as a breakdown of this level would be inconsistent with a sustained bullish continuation scenario.