Is Algorand (ALGO) Gearing Up for a Bullish Reversal? Historical Pattern Points to Major Rally

Date: Mon, April 14, 2025 | 08:59 AM GMT

The cryptocurrency market has endured a brutal start to the year, with Ethereum (ETH) logging a staggering 45% drop in Q1 — its worst quarterly performance in years. This widespread downturn rippled across the entire altcoin and memecoin sectors. However, investor sentiment is beginning to shift following U.S. President Trump’s last week announcement of a 90-day tariff pause, a move that injected fresh optimism into the market.

One token that appears to be taking advantage of the changing tide is Algorand (ALGO). After suffering a steep decline this year, ALGO has bounced back with impressive weekly gains of 21%.

Source: Coinmarketcap

But more importantly, we are now noticing something far more intriguing — historical price trends suggest that ALGO might be on the verge of a strong trend reversal, potentially setting the stage for another major rally.

Historical Pattern Hints at a Major Rally

A closer look at ALGO’s weekly chart reveals a familiar bullish pattern that could be signaling the start of a major trend reversal. The current market structure bears a striking resemblance to ALGO’s 2020 accumulation phase, which preceded its explosive rally in 2021.

In previous cycles, ALGO has consistently faced rejection at a long-term ascending resistance trendline. Each rejection was followed by a series of higher lows, indicating steady accumulation by buyers. This same structure is now playing out again, with ALGO recently testing the resistance zone before a slight pullback—just like in 2020.

Another key technical signal comes from ALGO’s interaction with the 50-week moving average (MA). Historically, successful retests of this moving average have acted as springboards for major upward moves. During the last bull run, ALGO bounced from the 50-week MA and went on to gain over 900%. In the current setup, ALGO has once again touched this moving average and is holding above it, suggesting that a similar breakout could be on the horizon.

What’s Ahead for ALGO?

If ALGO follows its historical pattern, a breakout above the ascending resistance trendline would confirm a bullish reversal. The immediate resistance lies between $0.40–$0.50, a zone where ALGO has previously struggled before major breakouts. Should the price clear this level with strong momentum, it could open the door for a move toward $1.00 and beyond—similar to its performance in early 2021.

However, if the resistance holds and momentum weakens, ALGO may continue consolidating below the trendline. Key levels to watch include the 50-week MA as support and a potential MACD confirmation, which could offer clues on the token’s next major move.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.