Algorand (ALGO) Shows Surprising Resilience as the Broader Market Faces Unprecedented Instability

This recent strength contrasts with Algorand's price action over the past week.

Key Takeaways

* Algorand (ALGO) is showing surprising strength and resilience as the broader market faces unprecedented instability.

* This recent strength is in direct contrast to what we've seen from Algorand’s price action over the past week.

* ALGO has already dropped by 30% in the last month. However, according to this on-chain analysis, backed by technical indicators, the altcoin could be ready to leave the broader market correction alone and chart its own path.

Algorand 30% Decline Meets Support at $0.20

Algorand’s price reached 2024’s yearly high, managing to trade above $0.50 in December. But since 2025 began, it has been downhill, with the token changing hands at $0.19 at press time.

This decline was due to profit-taking and rising selling pressure. However, data from IntoTheBlock shows that ALGO could ease some of this decline.

According to the on-chain analytic platform, the In/Out of Money Around Price (IOMAP) shows that the token has strong support at around $0.20. The IOMAP shows addresses and the volume of tokens that are in unrealized profits and losses.

With this data, one can spot support and resistance. A higher volume of tokens in profits indicates support, and the price is unlikely to decrease.

On the other hand, a higher volume of tokens in unrealized losses indicates resistance. As of this writing, CCN observes that nearly 320,000 addresses had a collective balance of 1.51 billion ALGO tokens at an average price of $0.20.

These addresses are in profit and outweigh the volume in losses between $0.21 and $0.23. Due to this, Algorand’s price is likely to pass $0.23 as long as the market condition does not worsen.

ALGO Price Forms Bullish Pattern

From a technical perspective, looking at the weekly charts shows that Algorand’s price is forming a pattern similar to the one that took the price above $2 in 2021. During that period, the altcoin formed a bullish flag.

A bullish flag is a technical pattern that signals a potential continuation of an uptrend. It forms after a price spike, followed by a brief consolidation period that resembles a flag on a flagpole.

This time, it appears that ALGO has formed a bullish pennant since the correction from $0.49. However, the consolidation will likely change to a big breakout if the buying pressure increases.

Algorand’s price might rise to as high as $0.70 within a few months if it manages to break out. If the bull market resumes, this could take the token’s value above $1 for the first time since the 2022 bear cycle.

On the flip side, if ALGO fails to attract significant demand, this might not happen. Instead, the altcoin’s value could sink to as low as $0.12.