ALGO’s volume over the last 24 hours reached $30.65M, while the low participation rate stands out despite the downtrend; this indicates weak selling pressure and potential accumulation signals. Market sentiment points to the volume deficiency not supporting the price movement, signaling potential base formation.
Volume Profile and Market Participation
ALGO’s current volume profile is trading below the average volume (approximately $45-50M) at $30.65M over the last 24 hours. This low volume reveals limited participation from sellers during the downtrend. While the price experienced a 3.23% drop to $0.08, the volume decline shows a lack of broad market participation and likely dominance of retail selling. For a healthy decline, volume is expected to increase, but the opposite is observed here: volume remains higher in upward moves and fades downward. This points to the Value Area in the Volume Profile being compressed around a low-volume POC (Point of Control), making the $0.0819-$0.0846 range a critical equilibrium zone. There is an impression that institutional buyers are waiting on the sidelines among market participants; as the 7 strong levels across 1D, 3D, and 1W timeframes (2S/2R 1D, 1S/0R 3D, 1S/2R 1W) highlight volume-supported resistances. Low-volume declines typically reflect ‘shakeout’ phases before trend reversals – ALGO is exhibiting a similar scenario.
Accumulation or Distribution?
Accumulation Signals
Signals favoring accumulation are strong: RSI at 32.82 is approaching the oversold region without matching volume decline – this is a classic ‘price-volume divergence’. The MACD histogram is expanding positively, and despite the price being below EMA20 ($0.09), the volume weakness suggests big players may be accumulating at the bottom. The $0.0819 support (76/100 score) holds during low-volume tests; similarly, the $0.0773 level (67/100) forms an accumulation base in weekly volume profiles. In recent weeks, upward candles close with higher volume, while downward ones have low volume – this aligns with Wyckoff’s ‘spring’ phase. Additionally, MTF volume levels (especially 1W’s 1S/2R) support silent accumulation by institutional buyers.
Distribution Risks
Distribution risk is low but present: Danger would increase if the $0.0846 resistance (90/100 score) showed high-volume rejection, but volume is insufficient. For the bearish target of $0.0574 (22 score), volume must increase; current low participation prevents broad distribution. If BTC’s decline accelerates, passive selling could trigger in ALGO, but current data shows accumulation dominant.
Price-Volume Alignment
Price action is not confirmed by volume: In the downtrend, a 3.23% price drop with volume below average shows weak selling momentum. For a healthy bear trend, volume should increase on down moves and decrease on ups – ALGO is doing the opposite. Despite Supertrend being bearish and below EMA20, the bullish MACD divergence is supported by volume; this emphasizes that price won’t recover before volume, meaning a real rally requires a volume explosion. In the near term, a $0.0846 breakout without volume carries fakeout risk. Overall, volume does not confirm price; this strengthens the ‘accumulation under the radar’ scenario.
Big Player Activity
Big player (institutional/whale) activity is hidden in low-volume declines: With 24h volume at $30.65M, whale wallet movements (per on-chain data) are buy-focused. In the Volume Profile, HVNs (High Volume Nodes) are concentrated in the $0.0773-$0.0819 range, with limited downward POC shift. On the 1W timeframe, the 2R level (around $0.1133) stands as institutional resistance – upside remains weak without testing it. No expected high-volume caps for distribution; instead, low-volume shakeouts are being tested. This pattern indicates institutions are accumulating at the bottom, shaking out retail by instilling fear – while not certain, volume behavior aligns.
Bitcoin Correlation
BTC is in a downtrend with a 4.41% drop to $64,593; Supertrend bearish and rising dominance pose risks for altcoins. ALGO shows high correlation with BTC (%0.85+): If BTC breaks $64,323 support, ALGO slides to $0.0773. Conversely, BTC breaking $65,475 resistance triggers ALGO rotation to $0.0846-$0.10. Key BTC levels: Supports $64,323/$61,686, resistances $65,475/$68,164. Without BTC recovery, ALGO volume increase remains limited; current BTC weakness supports ALGO accumulation, as decoupling signals emerge in altcoins.
Volume-Based Outlook
Volume-based outlook is cautiously optimistic: Low-volume decline + divergences favor accumulation, with bullish target $0.1114 (8 score) reachable with volume confirmation. Bearish scenario ($0.0574) requires a volume spike. In the short term, expect $0.0819 hold; long positions can be considered with volume increase signals. Check links for ALGO Spot Analysis and ALGO Futures Analysis. Volume tells the real story beyond price: If participation rises, reversal is near.
This analysis uses the market views and methodology of Chief Analyst Devrim Cacal.
Source: https://en.coinotag.com/analysis/algo-technical-analysis-february-23-2026-volume-and-accumulation
