Algorand / TetherUS
Short

ALGOUSDT - Double Bottom Setup or Bearish Continuation?

183
On the 1W (weekly) timeframe, ALGO/USDT remains in a long-term downtrend structure, forming consistent lower highs and lower lows since the 2025 peak.

Price has now returned to the historical demand zone at 0.092 – 0.081, which previously acted as a strong accumulation base and triggered a significant upward impulse.

This zone is a crucial level that will determine the medium–long term direction.


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Structure & Pattern Formation

1. Primary Trend: Bearish

Market structure continues to form lower highs.

Selling pressure has dominated since failing to hold the 0.30–0.35 region.

Volume weakens during upward retracements.


2. Re-Test of Major Weekly Support

Price has revisited its previous base (2023–2024).

The 0.092 – 0.081 area is a major demand zone.

Multiple weekly wicks indicate buyer reaction.


3. Potential Pattern

If strong rejection occurs:

It could form a Double Bottom on the higher timeframe.

Or develop into a Base Accumulation Range before reversal.


If breakdown occurs:

It would confirm a major Break of Structure (BOS).

Opening room for further distribution.



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Key Levels

Main Support:

0.092 – 0.081 (yellow block – major demand zone)

0.070 (next minor support)

0.058 – 0.050 (breakdown projection targets)


Nearest Resistance:

0.120

0.150

0.180

0.220 (previous structural breakdown level)



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Bullish Scenario

The bullish scenario becomes valid if:

1. Price holds above 0.081.


2. Strong weekly close above 0.10–0.12.


3. A bullish engulfing or strong rejection candle appears with increasing volume.



Potential Targets:

0.120 (first resistance)

0.150

0.180

0.220 (mid-term recovery level)


If prolonged accumulation occurs, this area could mark a long-term bottom.

Additional confirmation:

Break of the last lower high.

Volume expansion during breakout.



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Bearish Scenario

The bearish scenario activates if:

1. Strong weekly close below 0.081.


2. Clean breakdown without significant rejection wick.


3. Increasing sell volume during the drop.



Downside Targets:

0.070

0.058

0.050 (extended breakdown projection)


If this area fails, the weekly structure shifts into a long-term bearish continuation, potentially leading to capitulation.


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Conclusion

ALGO is currently positioned at a major decision zone.

The 0.092 – 0.081 area represents:

A historical accumulation zone

Multi-touch support

A key psychological level


The reaction here will determine whether:

This becomes a bottoming & reversal phase
or

The beginning of a new breakdown toward fresh lows


Risk management is crucial, as price is sitting at a high-timeframe support.


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