ALGO/USDT –Between Capitulation or Massive Reversal Zone?ALGO is now trading at one of the most decisive zones in recent years, a major historical support area between 0.17–0.135 — a battle zone between buyers and sellers since 2020.
Each time the price tapped this area, the market reacted with a strong reversal, signaling heavy accumulation by smart money. However, this time, selling pressure appears stronger, creating tension between a potential massive reversal or a final breakdown before a new redistribution phase.
The weekly structure continues to print consistent lower highs since 2021, confirming that the macro trend remains bearish. Yet, the recent price rejection around 0.135–0.17 and the presence of a liquidity sweep below that zone suggest that many retail stop-losses have been taken — possibly setting the stage for a mean reversion rally.
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🟢 Bullish Scenario: “The Bottom Reclaim”
Confirmation only occurs if weekly close > 0.235 with strong volume.
A breakout above this level would signal a structural reclaim and open the path for a rally toward 0.285 – 0.49 as the primary targets.
If momentum strengthens, further expansion toward 0.78 – 1.54 remains possible (the former 2021–2022 distribution area).
Aggressive traders may consider accumulation within 0.17–0.135, with a tight stop below 0.12, aiming for a minimum 1:3 risk-reward ratio.
💡 Additional bullish narrative:
If the crypto market rotates capital from major layer-1 assets into mid-cap plays, ALGO could become one of the “revival candidates,” backed by strong liquidity and a recognizable brand.
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🔴 Bearish Scenario: “Break the Floor”
If weekly close < 0.135, it would confirm a breakdown of multi-year structural support.
The next logical downside target lies around 0.082, the historical low and the last visible demand zone before uncharted territory.
Such a breakdown usually triggers a capitulation event, where short-term volume spikes due to panic selling.
In an extreme case, ALGO could establish a new structural range below 0.10 before attempting a long recovery.
💡 Additional bearish narrative:
If macro pressure persists (e.g., BTC retraces or USDT dominance rises), ALGO might experience a “final flush” before forming a structural bottoming pattern.
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📊 Key Structure & Technical Patterns
Primary pattern: Long-term Accumulation Range with repeated liquidity sweeps below support.
Macro trend: still bearish, though momentum is weakening — visible through declining volatility and volume contraction.
Potential reversal trigger: a strong bullish engulfing candle from within the yellow box.
Volume divergence: watch for rising volume around 0.15–0.17 — it often signals silent accumulation by smart money.
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🧭 Conclusion
ALGO is standing at a critical multi-year decision zone — it could either mark the beginning of a multi-year reversal or the final breakdown toward new lows.
Traders should focus on weekly reactions around 0.17–0.135 and wait for confirmed weekly closes before taking positions.
There is no “best” position yet — only patience and discipline will define the outcome at such a pivotal stage.
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