ALGO Weekly Analysis Feb 3

ALGO, within the downtrend, stabilized at the $0.11 level with a modest weekly 2.22% recovery, while the $0.1066 resistance forms a critical turning point. Although the market structure suggests a cautious accumulation phase, Bitcoin’s downward bias increases risks for altcoins.

ALGO in the Weekly Market Summary

ALGO exhibited narrow consolidation in the $0.10 – $0.11 range last week, recording a modest 2.22% rise. With the price positioned at $0.11, trading volume remained limited at 24.12 million dollars amid the prevailing overall market downtrend. RSI at 38.25 is in the neutral-bearish zone, MACD shows a negative histogram, and the price below EMA20 ($0.12) gives a bearish short-term signal. In the big picture, ALGO is approaching critical supports in the long-term downtrend; this week’s narrow band between $0.1050 – $0.1066 will test the trend structure. For portfolio managers, the position of this level will determine accumulation/distribution phases. For more detailed spot data, check the ALGO detailed spot analysis page.

Trend Structure and Market Phases

Long-Term Trend Analysis

The market structure shows that ALGO’s long-term downtrend remains intact; on higher timeframes (weekly and monthly), a lower high/lower low formation dominates. The price trading below EMA50 and EMA200 confirms the bearish trend filter. Although momentum indicators (RSI monthly around 35) are approaching oversold, MACD’s negative divergence signals that the trend strength is preserved. This structure is a continuation of the decline of up to 80% from the peaks at the end of 2025; however, the $0.0947 major support could be an inflection point for a potential trend change. For long-term portfolio positions, the trend should be managed with the principle of “intact as long as below $0.1066.”

Accumulation/Distribution Analysis

Volume profile and price action exhibit accumulation phase characteristics in the $0.10 – $0.1050 range: low-volume tests and wicky candles suggest smart money buying from lows. However, volume-less rises above $0.11 carry signs of distribution patterns (fakeout higher). According to Wyckoff methodology, this narrow range could be accumulation before a ‘spring’ or ‘shakeout,’ but in the downtrend context, false breakout risk is high. According to scored levels ($0.0947: 75/100 support), accumulation strength is increasing; a break above $0.1066 is awaited for distribution. This phase offers R/R optimization opportunities for position traders.

Multi-Timeframe Confluence

Daily Chart View

On the daily chart, ALGO is squeezed between $0.1050 support and $0.1066 resistance; 1D has 2 support/2 resistance confluence. Price bearish below EMA20, RSI at 38 neutral without divergence signal. Recent candles are doji-heavy, indicating momentum loss. Critical: A break below $0.1050 accelerates the daily downtrend, above triggers short-covering. For futures market, follow ALGO futures market data.

Weekly Chart View

From a weekly perspective, ALGO closed with a bearish candle despite lower timeframe rally; 1W has 2 supports/3 resistances (total 8 strong levels). Supertrend bearish, volume decline implies trend fatigue. $0.11 level is weekly pivot, below opens path to $0.0947. 3D timeframe 2S/0R confluence strengthens support test; confluence reinforces bearish bias.

Critical Decision Points

Main supports: $0.0947 (75/100, major confluence), $0.1050 (64/100, short-term). Resistances: $0.1066 (74/100, breakout level), $0.1593 (65/100, upside target). These levels will define direction: above $0.1066 bullish flip, below continuation of downtrend. Downside risk $0.0514 (22/100). Visit the ALGO and other analyses page for all analyses. Market structure says “key inflection point at $0.1066.”

Weekly Strategy Recommendation

In Bullish Case

On $0.1066 breakout and close, activate long positions for $0.1593 target (R/R ~2:1, 44% upside). Stop-loss below $0.1050; trail with EMA20. With accumulation phase confirmation, portfolio allocation can shift 5-10% to ALGO if BTC stable.

In Bearish Case

On $0.1050 breakdown, shorts to $0.0947 intermediate, ultimate $0.0514 target (R/R ~1.5:1, 53% downside). Stop above $0.1066. Bearish scenario confirms distribution; add BTC short for hedge.

Bitcoin Correlation

BTC in downtrend at $78,236 level (+0.06% 24h), supertrend bearish and rising dominance signals caution for altcoins. ALGO highly correlated with BTC (0.85+); if BTC breaks $77,400 support, ALGO tests $0.1050. Watch BTC resistances $79,364/$82,602 – BTC rally can carry ALGO to $0.13, decline accelerates to $0.09. Scale altcoin positions according to BTC key levels.

Conclusion: Key Points for Next Week

Next week, watch $0.1050-$0.1066 breakout; volume increase will confirm direction. BTC below $77k risks altcoin dump. If trend remains intact, short bias; long on confluence bullish flip. Position traders stay R/R focused, cautious in macro cycle down phase.