ALGO has been trading under a long term descending trendline and is now compressing near a critical support zone. Price action shows the formation of a potential inverse head and shoulders structure while still respecting the broader downtrend.
The neckline area aligns closely with the descending trendline, making this zone extremely important. A successful breakout above this trendline would invalidate the bearish structure and open the path for a stronger upside continuation toward higher resistance levels.
However, if price fails to break the neckline and loses the local support, a downside move toward the lower liquidity zone is possible to complete the wick fill. This would keep the broader bearish trend intact.
Momentum is tightening and volatility is likely to expand soon. The next move from this area should define the short to mid term direction.
@Algorand Foundation $ALGO #algorand
ALGOUSDT
Perp
0.1064
+5.66%