Algorand is currently positioned near a significant demand zone, prompting traders to monitor closely for any potential breakout following a series of reversals from this crucial support area. The price has been following a long-term downward trend; however, each dip near the demand zone has resulted in brief rebounds, maintaining optimism for a shift in trend.
As the market grapples with weak momentum indicators, steady compression around recent lows suggests a strong movement could take place as conditions improve. Presently, Algorand trades around $0.1570 on the daily chart, where buyers observe a well-known support area that has repeatedly absorbed price declines. A recent comment from analyst Lucky on X highlighted this situation, stating, “$ALGO is holding strong, a decent push seems likely once the market finds its footing again.” This observation reflects the increasing anticipation for a rebound.
The chart illustrates how this demand zone has historically triggered multiple upward movements throughout the year. Lucky”s analysis further boosts confidence in this outlook, emphasizing a structure that continues to compress, placing the market at a critical juncture. This combination of factors has led to heightened speculation regarding a potential breakout.
Repeated tests have reinforced the strength of the demand zone. The broader chart reveals Algorand“s ongoing struggle with a descending structure that has characterized much of the year. Following a robust breakout from the green demand zone in early 2025, sellers established a significant downtrend, marked by a long blue trendline that pushed the price back toward this same support area. Additionally, smaller descending channels formed, which initially broke upward but quickly lost momentum.
In July, the price produced another breakout, demonstrating a stronger push than prior rebounds. However, this upward movement could not sustain its higher structure, leading to a prolonged downward channel from August through November, during which lower highs consistently formed. The chart indicates that the price has touched the demand zone once again in November, making this point another possible turning area.
Currently, indicators reflect weak momentum alongside stable compression. Data from TradingView revealed a modest rebound of 2.95 percent during the latest session, yet the overall trend remains bearish. The MACD lines are positioned below zero, indicating limited momentum, while the RSI is near oversold territory with a reading close to 39.90. Trading volume has been mixed, with a significant spike in late October highlighting increased selling pressure.
As the market continues to compress near its lower range, traders are keenly observing for any breakout from the latest descending channel, as indicated in Lucky”s projections.
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