Bearish Pressure Mounts on ALGO: Can Support at $0.23 Hold?

ALGO’s price action is tightening inside a descending triangle, a bearish structure on the daily chart.

$0.23 remains a key support; a clean breakdown could push prices back to July levels.

Weak volume, falling indicators, and trendline resistance point to cautious sentiment around ALGO.

Algorand (ALGO) is walking a tightrope as bearish pressure builds. With price wedged inside a descending triangle, bulls and bears are bracing for a breakout that could set the tone for ALGO’s next big move.

Triangle Pattern Sets the Stage for a Big Move

Algorand’s price action is getting tighter by the day. On the daily chart, ALGO is forming a descending triangle — a setup often linked to bearish breakdowns. Price has been hovering between a steady support base near $0.23 and a falling resistance line stretching from recent highs.

Source: AlphaCryptoSignal Via X

At the time of writing, ALGO is trading at $0.2322, with over 6% drop in the last 24 hours and sliding 1.59% over the past week. Despite some attempts to rally, the coin is stuck below critical moving averages.

The descending structure reflects shrinking volatility, often a signal that a breakout is near. A drop below the $0.23 support could send prices tumbling, with downside targets potentially near July’s low. Meanwhile, bulls are hoping for a bounce — but it’ll only matter if ALGO can flip the falling trendline and reclaim ground above $0.26.

Momentum Slows as Indicators Flash Caution

Technical indicators warn of caution. The 9-day EMA at $0.2412 and 50-day SMA at $0.2482 are blocking gains, while falling volume hints a big move is coming.

ALGO fell sharply from $0.255 and found brief stability near $0.2323.Selling volume spiked during the drop, but has since cooled. The MACD remains in the red with weakening histogram bars suggesting that bearish momentum could be fading.

The RSI stands at 33.64, above the oversold zone that might attract dip-buyers.

Market Cap Slides

ALGO’s market cap paints a similar picture. From mid-August highs of $2.35B, it slipped below $2.10B, and struggled to stay above $2.20B in early September. A recent pullback brought the figure back down near $2.00B, signaling that buyers are still hesitant.

A strong recovery above $2.20B could shift sentiment. But if $2.00B fails, ALGO may face deeper losses.

ALGO is at a pivotal point if it breaks below $0.23 it could go down further however if it stays above $0.26 bulls may continue upward move.

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