Algorand’s market structure suggests a possible reversal as technical indicators signal exhaustion in selling momentum. Recent TD Sequential buy signals point toward early signs of recovery, with traders closely watching key resistance and support levels for confirmation.
TD Sequential Indicator Suggests Exhaustion of Selling Pressure
A recent analysis from market observer @ali_charts revealed that Algorand’s daily chart printed two consecutive buy signals through the TD Sequential indicator. This pattern often marks trend exhaustion after an extended period of decline. The setup shows a long bearish sequence, followed by smaller-bodied candles suggesting that sellers may be losing strength.
The appearance of a green “13” signal represents the final phase in the TD Sequential cycle, typically associated with capitulation and the potential start of accumulation. Algorand had fallen drastically at the range of about $0.185-%0.145, representing a fall of approximately 22% during the last one week. The wide candle ranges, coupled with pronounced lower wicks, indicate that buyers are beginning to step in near oversold conditions.
The chart indicates that after the signal 13, there was a small white candle, which is a pointer that short term sentiment might be shifting towards neutrality. Such setups are often viewed by traders as early signs of stabilization, but it is necessary to confirm them by volume and sustained price action. The occurrence of a 9 number before the decline was a correct forecast of the termination of a brief recovery before the recent correction took place.
Market Activity Indicates Decreasing Volume with Stabilizing Prices
Algorand is trading at approximately $0.159, and is experiencing a 2.37% increase over the last 24 hours indicating cautious optimism among traders. This growth notwithstanding, the 24-hour trading volume of $58.95 million represents a decrease of 47.36%, indicating less speculative play. The volume-to-market cap ratio of 4.21% supports the notion of slower market participation following recent volatility.
The project maintains a $1.39 billion market cap, ranking #54 globally, while its fully diluted valuation (FDV) stands at $1.59 billion. With 8.79 billion ALGO already circulating from a total 10 billion supply, dilution risks remain low. This broad distribution offers a more predictable supply structure that can encourage stable trading conditions.
Although volume contraction often reflects hesitation, it can also signal market equilibrium before a potential reversal. If Algorand sustains its current price range and sees renewed volume inflows, the recovery could extend toward higher resistance levels identified in the technical setup.
Technical Levels Define the Next Directional Move
The $0.145–$0.150 range now acts as Algorand’s key support area. These levels were the reaction zones of earlier periods of consolidation. To the upside, the stronghold is between $0.165 and $0.170, which also coincides with previous breakdown and the moving averages of the short term.
To authenticate a real shift in trend, analysts observe that the price should be closing regularly on an upward side of the resistance band with a rise in the trading volume. In the absence of this confirmation, the present arrangement can be considered as a temporary truce, but not a beginning of a prolonged rally.
The market mood is still rather cautiously optimistic with a lot of traders observing the stability of Bitcoin to give market trends in a wider sense. In case of the purchasing pressure, Algorand might be able to prolong its existing trend, which will constitute the basis of a short-term recovery situation. Nevertheless, the general arrangement is yet to be patient since the larger bearish trend is still intact until significant levels are revisited.