Algorand (ALGO) Rallies 4.6% Despite Tether USDT Withdrawal – Can Bulls Break $0.31 Resistance?
Rebeca Moen Aug 07, 2025 04:58
ALGO trades at $0.24 with 4.6% daily gains as bulls fight back against Tether's USDT withdrawal announcement, testing crucial resistance levels ahead.
Quick Take
• ALGO currently trading at $0.24 (+4.62% in 24h) • Algorand's RSI sits neutral at 47.74 while testing key resistance near $0.31 • Tether's USDT withdrawal by September 1st creates headwinds despite recent 5.25% recovery • Technical patterns suggest potential 40% upside following double bottom formation
What's Driving Algorand Price Today?
The ALGO price has shown remarkable resilience over recent trading sessions, gaining 4.62% in the past 24 hours to reach $0.24. This follows last week's impressive 5.25% recovery to $0.25 on August 4th, demonstrating the strength of Algorand bulls despite significant market headwinds.
The primary catalyst weighing on sentiment remains Tether's announcement to cease USDT support on the Algorand blockchain by September 1, 2025. This development initially triggered a 6% decline in ALGO price, as USDT withdrawal typically reduces liquidity and trading activity on affected networks. However, the swift recovery suggests that Algorand's fundamentals and technical positioning may be strong enough to weather this challenge.
Adding to the bullish narrative, recent technical analysis indicates Algorand is testing crucial support levels after breaking out of a bullish double bottom pattern. This formation, combined with strong Q2 results, has led analysts to project a potential 40% price increase from current levels.
ALGO Technical Analysis: Mixed Signals Point to Critical Juncture
Algorand technical analysis reveals a market at an important crossroads. The ALGO RSI currently reads 47.74, placing it squarely in neutral territory – neither overbought nor oversold. This positioning suggests room for movement in either direction, making the next few trading sessions crucial for determining short-term trend direction.
The moving average picture presents a mixed but increasingly bullish scenario. Algorand's price sits just below the SMA 20 at $0.26, while holding above both the SMA 50 and SMA 200 at $0.23. The EMA 12 and EMA 26 are converging at $0.25, creating a potential launching pad for the next significant move.
However, the MACD histogram shows bearish momentum at -0.0053, indicating some selling pressure remains. The Stochastic indicators (%K at 27.92, %D at 25.28) suggest ALGO may be approaching oversold conditions, which could trigger a bounce if buyers step in.
Algorand Price Levels: Key Support and Resistance
Based on Binance spot market data, several critical levels will determine ALGO's near-term trajectory. Immediate resistance sits at $0.31, representing the first major hurdle for bulls attempting to extend the current rally. Breaking this level could open the door to Algorand's strong resistance at $0.34.
The Bollinger Bands provide additional context, with ALGO's upper band at $0.30 and the current price position at 0.2719 of the band width. This suggests the ALGO price has room to move higher within the current volatility range before reaching technically overbought levels.
On the downside, Algorand support levels become critical for maintaining the bullish outlook. Immediate support rests at $0.22, closely aligned with the Bollinger lower band. Should this level fail, the next major Algorand support sits at $0.15, though such a decline would likely require a significant shift in market sentiment.
The daily ATR of $0.02 indicates moderate volatility, suggesting any breakout moves may be measured rather than explosive.
Should You Buy ALGO Now? Risk-Reward Analysis
The current ALGO price setup presents different opportunities depending on your trading style and risk tolerance. For swing traders, the risk-reward profile appears favorable with ALGO/USDT positioned near the middle of its recent range. Entry near current levels offers a relatively tight stop-loss at $0.22 support, while potential upside targets the $0.31-$0.34 resistance zone.
Conservative investors might wait for a clear break above $0.31 resistance before establishing positions, as this would confirm the bullish double bottom pattern and potentially trigger the projected 40% advance. Such an approach reduces the risk of getting caught in a false breakout but may sacrifice some potential gains.
Day traders should monitor the ALGO RSI closely, as any move above 50 could signal renewed buying momentum. The convergence of EMAs near current price levels suggests increased volatility may be coming, creating opportunities for those comfortable with higher-frequency trading.
Risk management remains crucial given the overhang from Tether's USDT withdrawal. While the initial impact appears absorbed, the actual implementation on September 1st could create additional selling pressure that catches bulls off-guard.
Conclusion
The ALGO price stands at a critical juncture, with bulls demonstrating impressive resilience against the Tether USDT withdrawal headwind. Current Algorand technical analysis suggests a neutral-to-bullish setup, with the potential for significant upside if resistance levels break. However, traders should remain vigilant about the approaching September 1st deadline and its potential impact on ALGO/USDT trading dynamics. The next 24-48 hours will likely prove decisive in determining whether Algorand can extend its recent recovery or faces renewed selling pressure.
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