ALGO Faces Wedge Test as Recovery Setup Forms

ALGO shows signs of a potential recovery as a wedge breakout could confirm a wave 2 bounce after a prolonged Elliott Wave decline.

• ALGO trades near $0.08 as the final Elliott Wave decline approaches a possible completion within a narrowing descending wedge.
• A wedge breakout could confirm a corrective wave 2 bounce, targeting Fibonacci resistance zones above current trading levels.
• ALGO remains below key resistance despite rising trading volume and repeated recovery attempts during the latest trading session.

ALGO remains under selling pressure as traders monitor a possible trend reversal following an extended decline. Technical signals indicate bearish momentum may be fading, although confirmation still depends on price breaking above key resistance.

Elliott Wave Structure Points to a Potential Turning Point

More Crypto Online shared an updated Elliott Wave outlook for ALGO on X. The analysis stated wave (5) of the larger circle wave 1 may be nearing completion. A breakout above the descending wedge would signal the beginning of a corrective wave 2 bounce.

Source: More Crypto Online via X

The 12-hour chart presents a complete five-wave structure from the June high. Waves (1), (2), (3), and (4) appear complete under the current count. Wave (5) continues developing as the final bearish impulse.

Price has maintained lower highs and lower lows throughout the decline. That pattern keeps the broader downtrend intact for now. Traders continue watching for confirmation before changing their outlook.

The chart also displays smaller subdivisions inside wave (5). Those internal waves suggest the final decline may be approaching completion. Selling pressure has eased near the $0.08 area despite fresh lows.

Descending Wedge Draws Market Attention

The descending wedge remains the dominant technical pattern on the chart. Price continues compressing between narrowing trendlines as volatility gradually contracts. Such formations frequently appear during mature downtrends.

More Crypto Online noted that the wedge alone does not confirm a reversal. Price must close above the upper boundary before the bullish scenario gains credibility. Until then, sellers retain technical control.

The chart includes several Fibonacci retracement levels for a potential recovery. The 38.2% level stands near $0.0964 after a confirmed breakout. Higher resistance appears around $0.1053, $0.1126, and $0.1239.

Those retracement zones could limit any corrective advance. Elliott Wave theory generally treats wave 2 as a temporary recovery. A sustained rally would still require additional technical confirmation.

ALGO Holds Near Support While Volume Rises

ALGO  as of the time of writing traded around $0.0797 during the latest session after losing 2.29%. The token opened near $0.0817 before sharp selling pushed it below $0.0800. Buyers later stabilized the decline without reclaiming earlier losses.

Trading eventually shifted into a narrow consolidation range. Price moved mostly between $0.0795 and $0.0805 for several hours. That activity reflected balanced participation from buyers and sellers.

CoinMarketCap data showed market capitalization near $715.6 million. Daily trading volume increased more than 38% to $25.4 million. The volume-to-market-cap ratio reached approximately 3.55% during the session.

Immediate support remains between $0.0785 and $0.0790. Resistance continues near $0.0805 and $0.0817. A move above wedge resistance would strengthen expectations for a corrective wave 2 recovery, while another rejection would keep the prevailing bearish trend intact.