Key highlights:
- The ALGO price is testing a key resistance zone, with a potential Wave 5 move still in play
- A clean breakout could send the ALGO price toward $0.148 and possibly higher
- Failure to hold structure may trigger a deeper pullback toward key support levels
Algorand is starting to get some attention again, and this time there’s a clear technical reason behind it. A recent take from Eric Van Tassel identifies a possible Elliott Wave setup, and when you look at the chart, it actually makes a lot of sense.
The idea here is pretty straightforward. The ALGO price looks like it could be moving through a classic five-wave pattern, and if that structure holds, there might be one more push higher before things slow down.
Breaking down the ALGO price action
We took a look at the ALGO chart shared by Eric, and the structure is fairly easy to follow. The move kicked off in late March, when price broke out from around $0.088 and started climbing. That looks like Wave 1.
After a quick dip for Wave 2, ALGO started to gain some momentum. It pushed higher into Wave 3 and climbed up into that $0.134 to $0.137 range. That move was clearly the strongest one we’ve seen yet, which fits perfectly with how Wave 3 tends to be the most powerful leg of the sequence.
Then came the pullback. The ALGO price dropped back toward $0.121, which lines up with a key Fibonacci level. It wasn’t a deep correction, and that’s usually a good sign. Moves like that often set the stage for another leg higher. Now price is starting to push again, and that brings attention to what could be Wave 5.
Why this zone is so important
At the moment, the ALGO price is around $0.120 and pushing into a resistance area between about $0.126 and $0.130. This isn’t a random zone. It’s one that has already pushed the price back before.
What makes it more interesting is how different signals line up here. The Fibonacci levels and the broader channel structure are both pointing to the same area. When that kind of alignment happens, it usually becomes a key level to watch.
Another thing working in favor of this setup is momentum. RSI has cooled off a bit after the last rally, so there’s still room for the ALGO price to move higher without running into immediate exhaustion.
What could come next for ALGO
ALGO is still at a decision point. If the price gets pushed back from this zone, the whole setup could start to lose strength. On the downside, the main level to keep an eye on is around $0.114. If the price slips below that, it would hurt the bullish case and could lead to a steeper drop, possibly all the way down to the $0.098 area.
Right now, the ALGO price is in a spot where it could go either way. A clean break above resistance could confirm the bullish structure and lead to one more move higher. A rejection could mean more consolidation or even a deeper pullback.
CoinCodex’s 1-month ALGO price prediction puts the token around $0.1231. That’s right around where the ALGO price is trading now, pointing to a more steady, range-bound move in the short term as the market figures out its next direction.
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Source: https://coincodex.com/article/83690/algorand-price-prediction-analyst-spots-a-classic-wave-5-setup-forming/
