ALGO price is testing a pivotal support zone after breaking out of a bullish double bottom pattern as momentum resets for a potential 40% surge.
Summary
- ALGO price confirmed a double bottom pattern with a neckline at $0.26, which now acts as critical support.
- ALGO is now consolidating just above the neckline and the 20-day EMA, forming a key confluence zone.
- RSI has dropped from overbought levels to around 53, indicating healthy consolidation without bearish momentum.
- If support holds, ALGO could retest $0.34, with a measured move target of $0.37—representing a potential 40% upside from the current levels.
- Q2 2025 Transparency Report reveals record-breaking 3B+ lifetime transactions and a 7.5% QoQ transaction volume increase.
Algorand (ALGO) price is currently in a breakout retest phase, trading just above the neckline of a confirmed double bottom pattern with two key lows at $0.15 and $0.16 and the neckline at $0.26. After breaking out decisively in mid-July, ALGO price rallied to a local high near $0.34 before pulling back and is now consolidating at this neckline level, which aligns closely with the 20-day EMA ($0.2611). This confluence zone is acting as a critical support area, where bulls are likely to defend the breakout.
RSI has cooled significantly from its overbought peak near 80, reached when price topped out at $0.34, to its current level around 53. This reset in momentum without dipping into bearish territory suggests healthy consolidation and strengthens the case for sustaining further upside.
If this retest holds, the next immediate target lies around the recent high of $0.34, with a measured move projection from the double bottom pattern pointing toward $0.37, representing a potential 40% upside from the current levels. However, a daily close back below the neckline would risk invalidating the breakout and open the door for a deeper pullback toward $0.23 or even the $0.20 zone.
What’s driving ALGO price?
Beyond technicals, ALGO’s recent price action is also underpinned by fundamental developments highlighted in the Algorand Foundation’s Q2 2025 Transparency Report, released yesterday.
The report shows that Algorand network achieved record transaction volumes, surpassing 3 billion lifetime transactions in May, alongside a 7.5% QoQ increase in quarterly transaction volume. Consensus staking also surged by 28.7%, reaching 1.95 billion ALGO staked, while community-held staking rose 51%, reinforcing decentralization progress.
Additionally, RWA TVL on Algorand increased 12.7% in Q2, fueled by tokenization initiatives like the launch of Midas’ mTBILL, a tokenized short-term U.S. Treasury ETF certificate.
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