Algorand (ALGO) Down 30% in a Month: Price Outlook

Algorand (ALGO) has come under renewed selling pressure after a brief rally at the end of May. Following a move above a key multi-week high, the token quickly reversed course and lost more than 36% in just seven days. This sharp decline has shifted market sentiment and raised questions about whether Algorand is entering a deeper bearish phase or simply undergoing a correction before finding support.

Algorand (ALGO) technical analysis

ALGOUSD - 1 Day Time Frame

At the turn of May and June, ALGO swept Buy-Side Liquidity above a multi-week internal high. The reaction was immediate, as price declined by more than 36% within seven days, signaling a clear shift toward bearish price delivery.

An important aspect of the current setup is the relatively broad support zone that was broken during the recent decline. Following this breakdown, the area may now be viewed as a potential resistance zone. This zone, highlighted in blue on the chart, could become a key reference area if price attempts to recover. The midpoint of this zone is represented by the 0.5 Fibonacci retracement level near $0.1165. This level may act as an important reference point if price retraces higher before potentially continuing its bearish move.

Based on the current structure, some traders may consider short positions. One approach could involve opening part of a position at the current market price while placing the remaining portion through a limit sell order near the 0.5 Fibonacci level at $0.1165. This approach may allow exposure to the current bearish momentum while leaving room to add to the position if price retraces toward the resistance zone.

From a risk-management perspective, a protective stop loss could be placed above the internal high created during the Buy-Side Liquidity sweep. A move above this level could weaken the bearish setup and suggest that sellers are no longer fully controlling price delivery.

Algorand (ALGO) price target

The first logical downside target is located near the Sell-Side Liquidity zone around $0.08. This area represents the nearest significant liquidity target visible on the chart and may attract increased market attention if selling pressure continues.

Below this level, there are currently no clearly defined historical Sell-Side Liquidity zones. As a result, the next potential downside objectives may be based on psychological price levels, specifically around $0.07, $0.06, and $0.05.

For now, the technical structure favors sellers following the Buy-Side Liquidity sweep and the subsequent 36% decline. As long as price remains below the blue resistance zone, the probability may remain tilted toward further downside continuation.

The key level to monitor is the 0.5 Fibonacci retracement at $0.1165, as a reaction from this area could provide a more favorable entry point for the bearish scenario. If selling pressure remains dominant, ALGO could continue moving toward the Sell-Side Liquidity zone around $0.08, followed by the lower psychological support levels.

Crypto assets are unregulated, decentralised and highly volatile assets which entail substantial risks and you may lose all invested capital. Refer to the Disclaimers for detailed information on potential risks.