How High Will Algorand Go?

Algorand (ALGO) has shown early signs of strength after reclaiming an important technical level, potentially marking a shift in short-term momentum. While buyers have regained some control following a recent move to new yearly lows, the coming days could determine whether this recovery develops into a broader rally or proves to be only a temporary rebound.

Algorand (ALGO) technical analysis

ALGOUSD - 1 Day Time Frame

At the turn of July and August, ALGO fell below this year's low at $0.079, which was established on March 29. From a liquidity perspective, this move likely swept Sell-Side Liquidity below the previous low, triggering Stop Loss orders before buyers stepped back into the market. However, a liquidity sweep alone is not enough to confirm a bullish reversal. Additional confirmation was needed to suggest that market momentum was beginning to shift.

That confirmation came when ALGO reclaimed the daily resistance zone between $0.082 and $0.084, highlighted in blue on the chart. On Sunday, August 2, the price closed above this zone, strengthening the case for a potential bullish continuation. Rather than remaining below the reclaimed resistance after taking liquidity beneath the yearly low, ALGO moved back above this key technical area, improving the short-term outlook.

Algorand (ALGO) price target

Following the confirmed reclaim, traders may consider the current structure supportive of a potential long setup. From a risk-management perspective, a protective Stop Loss could be placed below the new yearly low, around $0.075. A move below this level could weaken the bullish structure and suggest that the recent reclaim has failed. On the upside, the first potential target is the Buy-Side Liquidity zone around $0.092, followed by additional resistance levels near $0.096, $0.104, and $0.139.

For now, ALGO maintains a constructive technical structure after sweeping liquidity below the March low and reclaiming the daily resistance zone. As long as price continues to hold above the reclaimed area and the $0.075 low remains intact, the focus could remain on a potential move toward the higher liquidity zones, while a break below support would increase the risk of renewed selling pressure.

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