Algorand's recent 4-day chart displays a promising technical structure following an extended bearish trend. The TD Sequential indicator has now issued a buy signal, suggesting that the asset may be preparing for a potential reversal phase after weeks of downward pressure.
TD Sequential Buy Signal Suggests Potential Rebound
The latest analysis of Algorand (ALGO/USDT) reveals that the TD Sequential, a time-based indicator designed by Tom DeMark, has flashed a new buy signal. This comes after the same tool accurately marked the market top earlier in the year. The chart shared by Ali (@ali_charts) shows that the previous sell signal initiated a multi-week correction, driving ALGO from approximately $0.29 to near.
The new buy setup, represented by a white arrow, indicates that the selling phase could be nearing exhaustion. Recent candles exhibit smaller body ranges and shorter downside wicks, which typically occur when bearish momentum fades and accumulation begins. These structural patterns are common precursors to localized trend reversals within consolidating markets.
As at the time of writing, ALGO’s price hovers around $0.1851, up 2.34% over the past 24 hours, with a market capitalization of $1.63 billion. Despite a 42.95% decline in volume to $41.68 million, the technical setup is still strong. The traders closely observe the $0.19–$0.20 resistance level, as a close above it would confirm the reversal and begin a likely bull run.
Market Structure Stabilizes Near Key Support Levels
Algorand’s current stabilization around the $0.18–$0.19 range mirrors prior consolidation seen in late 2022 and early 2023. This area represents a historical support base where buying interest previously absorbed strong selling pressure. The recurrence of stability at this level strengthens the argument that a floor may be forming.
Ali’s chart shows that the latest candle has a lower shadow, suggesting that buyers are stepping in to counteract residual selling pressure. In previous market cycles, these types of trends have preceded major recoveries with the help of volume reversals and momentum divergence signals such as RSI and MACD.
Market players are also being cautious, as a prolonged dip below $0.18 will nullify the signal and expose ALGO to further weakness towards $0.16. The emphasis now is on whether price action can recapture short-term resistance and establish a higher support level to validate the reversal pattern.
On-Chain Strength Reinforces Technical Outlook
Beyond technical patterns, Algorand continues to demonstrate strong on-chain performance. Market observer @algerstmehn reported that the network processed over 10 million transactions in the past 12 hours—an average of around 230 transactions per second. This level of throughput maintains the operational efficiency of this protocol.
These kinds of sustained volumes of transactions are a testament to the strength and adoption of Algorand even during periods when trading volume is low. The ability of the blockchain to maintain high volumes of processing is a demonstration of long-term utility for decentralized applications and enterprise platforms.
Combining technical and network metrics, Algorand appears to be approaching a pivotal juncture. If the TD Sequential signal is confirmed by further buying momentum, a short-term rebound could follow, possibly leading to a recovery toward $0.22–$0.25. The convergence of price stabilization, historical support, and robust transaction activity presents a constructive setup for the asset’s near-term trajectory.