ALGO is positioned at a critical juncture at the $0.12 level. The price, squeezed in the $0.11-$0.13 range with a 7.04% drop in the last 24 hours, is approaching the oversold region with RSI at 41.57 despite its downward trend, while balanced support/resistance levels across multiple timeframes make both scenarios possible. Market volume remains limited at $37.86M, carrying breakout potential in both directions under Bitcoin dominance and general altcoin pressure. Traders should stay prepared by monitoring trigger levels.
Current Market Situation
ALGO’s current technical chart is filled with short-term bearish signals but exhibits a balanced structure in the medium term. With the price at the $0.12 level, the 24-hour change of -7.04% reflects downward pressure. RSI at 41.57 is in a neutral-bearish position; it hasn’t yet reached oversold (below 30) but signals momentum loss. The MACD histogram is negative and maintains a bearish crossover, indicating potential continuation of selling pressure.
The price remaining below EMA20 ($0.13) confirms a short-term bearish trend. The Supertrend indicator gives a bearish signal and positions $0.14 as resistance. In multi-timeframe (MTF) analysis, a total of 8 strong levels were identified across 1D, 3D, and 1W timeframes: 2 supports/1 resistance on 1D, 1S/1R on 3D, and 3S/3R balance on 1W. Key supports are $0.1176 (strength score 69/100) and $0.1051 (65/100); resistance at $0.1254 (67/100). Volume is trending at low levels, creating a structure sensitive to volatility. No news flow; it’s a technically focused setup.
Scenario 1: Bullish Scenario
How This Scenario Unfolds?
For the bullish scenario, a clear break and close above the $0.1254 resistance is required first. This level aligns with EMA20 and will test the Supertrend resistance. Subsequently, a volume increase with RSI moving above 50 could provide momentum confirmation. A bullish MACD turn to positive on the 1D timeframe and holding the $0.1176 support on 1W would indicate buyers entering. If 3 support levels in MTF (especially $0.1051) are defended, it paves the way for an altcoin rally. Trigger: Daily close above $0.1254 + 50%+ volume increase. Invalidated by: Drop below $0.1176.
Educational perspective: Traders should use stop-loss above $0.1176 for long positions in this scenario. Post-breakout pullbacks (retracements) around $0.1220 can be buying opportunities, but early entry is risky. According to Fibonacci retracements, a break of the 0.618 level ($0.1254) activates extension targets.
Target Levels
First target $0.14 (Supertrend resistance), second $0.15 (previous swing high). Main target $0.1730 (strength score 31/100), derived from 1W Fibonacci extension. Risk/reward ratio from current price is approximately 1:1.4 (balanced compared to downside to $0.0752). A close above $0.1730 could trigger a new impulse wave toward $0.20. Monitor: Volume profile and OBV (On-Balance Volume) increase.
Scenario 2: Bearish Scenario
Risk Factors
The bearish scenario is triggered by a break of the $0.1176 support. This level has a high strength score (69/100), and a high-volume close below it creates a cascade effect. MACD bearish histogram expansion and RSI dropping below 30 strengthen selling momentum. While Supertrend maintains its bearish signal, sustained trading below EMA20 confirms the short-term trend. In MTF, a break of the first of 3 supports on 1W initiates liquidity hunting. Additional risk: Increasing Bitcoin dominance (dom Supertrend bearish). Trigger: Close below $0.1176 + negative volume spike. Invalidated by: Break above $0.1254.
Educational perspective: Stop-loss above $0.1254 is ideal for short positions. Post-breakout retests (e.g., at $0.1176) offer short adding opportunities. Watch for fakeouts in low volume; real breaks must be confirmed with volume. Remaining below the Ichimoku cloud supports bearish continuation.
Protection Levels
First protection $0.1051 (65/100 score), its break leads to $0.09. Main target $0.0752 (22/100 score), from 1D/3D support cluster. Risk/reward from current price around 1:1.2. Below $0.0752 carries deep downside risk to $0.06. Monitor: RSI divergence (rising RSI with falling price) as early warning.
Which Scenario to Watch?
Decision-making triggers are clear: For bullish, $0.1254/EMA20 breakout and RSI 50+; for bearish, $0.1176 break and MACD expansion. Volume is critical: >$50M spike determines direction. Wait for daily/4H closes for confirmation. A wait-and-see strategy is recommended against false breakouts. Follow current data from ALGO Spot Analysis and ALGO Futures Analysis pages. In both scenarios, invalidation levels allow trading without risking the current price.
Bitcoin Correlation
ALGO is a highly correlated altcoin with BTC (0.85+%). Despite BTC’s uptrend at $93,231, its 24h -2% drop and dominance Supertrend bearish signal create caution for altcoins. If BTC holds supports at $92,911/$90,915, ALGO’s bullish scenario strengthens (altseason hint). If BTC breaks $92,911 (toward $88,311), ALGO’s $0.1051 test accelerates. Breaks of resistances $94,151/$96,160 support ALGO $0.14 rally. Monitor: BTC/ALGO ratio; if BTC stabilizes, expect relative outperformance from ALGO. BTC dominance decline (currently bearish Supertrend) could trigger alt rally.
Conclusion and Monitoring Notes
ALGO’s $0.11-$0.13 range is primed for a volatility explosion. Both scenarios are supported by MTF levels; traders should focus on triggers and manage risk. Monitoring list: 1) $0.1254 R / $0.1176 S breaks, 2) Volume >$50M, 3) RSI/MACD divergence, 4) BTC $92,911 S / $94,151 R. Mark these levels on charts and follow news flow (ALGO ecosystem updates). Remember, the market is built on probabilities; do your own analysis.
This analysis uses the market views and methodology of Chief Analyst Devrim Cacal.
Source: https://en.coinotag.com/analysis/algo-rise-or-fall-january-19-2026-scenario-analysis
