- he Algorand price consolidates above key $0.26 support, aligning with the 20-day EMA after a breakout from a double bottom pattern.
- RSI cooldown to 53 reflects momentum reset, reinforcing bullish setup without signs of bearish pressure on short-term charts.
- The Q2 report reveals over 3B transactions and rising staking activity, adding fundamental support to Algorand’s technical strength.
Algorand is currently stabilizing just above a critical support zone, following a breakout from a confirmed double bottom formation. The pattern established firm support at the $0.15 and $0.16 levels, with the neckline positioned at $0.26. After a decisive breakout in mid-July, ALGO rallied toward $0.34 before pulling back to the neckline area, which is now being retested.
The retest is taking place at a pivotal confluence zone, where the neckline aligns closely with the 20-day Exponential Moving Average, which stands at $0.2611. This zone is viewed as a significant support level, where bulls may seek to maintain control and validate the breakout. Price consolidation at this level is a key technical development that could determine the direction of the next move.
Momentum Indicators Reflect Healthy Reset
The Relative Strength Index (RSI) has calmed down slightly after peaking in an overbought state of almost 80 when ALGO reached the value of 0.34, registering at the figure of approximately 53. The change can be characterized as a momentum reset, but not a bearish one. The view of constructive pullback has been supported by the RSI level, which complements the larger upward structure.
Provided that the support at the neckline remains intact, price action may continue its bullish run. The new high at $0.34 will likely be retested, and the measured move of the double bottom formation shows that there may be a potential move up to 0.37. This is a projected 40% increase over the existing levels. Nevertheless, a close below the neckline daily could change the short-term sentiment and subject the price to further losses to the levels of around $0.23 or even $0.20.
Fundamentals Reinforce Technical Setup
Beyond chart patterns, Algorand’s Q2 2025 Transparency Report supports its positive price structure. The network surpassed 3 billion lifetime transactions in May and posted a 7.5% increase in quarterly volume. Staking activity also expanded, with consensus staking up 28.7% and community staking rising 51%, signaling continued decentralization.
Real World Asset (RWA) total value locked on Algorand rose by 12.7% in the second quarter. This growth was driven by initiatives like Midas’ mTBILL, a tokenized U.S. Treasury ETF certificate, which contributed to increasing network utility and investor participation.
