ALGO has been in a clear downtrend for an extended period, but price is now compressing inside a falling wedge, a pattern that often precedes a bullish reversal.
Price is currently testing a major horizontal support zone aligned with previous macro lows. At the same time, price remains below the SMA 40 and EMA 150, confirming that higher-timeframe momentum is still bearish. As long as these moving averages are not reclaimed, caution is warranted.
🔍 Scenarios:
Bullish scenario:
– Breakout above the falling wedge
– Reclaim of the EMA 150
– First targets toward prior range highs
Bearish scenario:
– Loss of current support
– Acceleration to the downside toward lower liquidity zones
– Wedge failure → trend continuation
This is a key decision area: either a structural trend reversal, or one final flush before a potential bottom forms.
Price is currently testing a major horizontal support zone aligned with previous macro lows. At the same time, price remains below the SMA 40 and EMA 150, confirming that higher-timeframe momentum is still bearish. As long as these moving averages are not reclaimed, caution is warranted.
🔍 Scenarios:
Bullish scenario:
– Breakout above the falling wedge
– Reclaim of the EMA 150
– First targets toward prior range highs
Bearish scenario:
– Loss of current support
– Acceleration to the downside toward lower liquidity zones
– Wedge failure → trend continuation
This is a key decision area: either a structural trend reversal, or one final flush before a potential bottom forms.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.