Date: Wed, Aug 20, 2025 | 09:40 AM GMT
The cryptocurrency market is experiencing notable selling pressure as Ethereum (ETH) slips to $4,175 from its recent high of $4,780, marking a 9% weekly drop. This weakness has spilled over into the major altcoins, including Algorand (ALGO).
$ALGO is in the red today, logging a 11% weekly decline. However, beneath the surface, a harmonic pattern is quietly forming on its daily chart—hinting that a bounce back could be on the horizon.
Source: Coinmarketcap
Harmonic Pattern Hints at Potential Upside
On the daily chart, ALGO appears to be shaping a Bearish Gartley harmonic pattern. While the name suggests a bearish outcome, the final CD leg of this formation often triggers a bullish continuation as the price stretches into the Potential Reversal Zone (PRZ).
The structure began at point X ($0.2236), dropped to A, rebounded to B, and then corrected to C near $0.2372. From there, ALGO has started to show resilience, now trading around $0.2433, though it remains in the early stages of confirming a sustained rebound.
Algorand (ALGO) 4H Chart/Coinsprobe (Source: Tradingview)
Importantly, ALGO is trading just below its 100-day moving average ($0.2567)—a critical level that could flip into strong support if reclaimed.
What’s Next for ALGO?
If buyers defend the C-point support at $0.2372 and push the price above the 100-day MA, it would strengthen the bullish case. A continuation from there could propel the token into the PRZ, spanning $0.3097 (0.786 Fibonacci extension) to $0.3331 (1.0 extension)—historically critical levels where the Butterfly pattern tends to complete.
However, failure to hold above $0.2372 would weaken the structure, delaying confirmation of the CD-leg and exposing ALGO to further downside before any potential bullish continuation.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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