ALGO Technical Analysis Jan 21

ALGO market structure is currently dominated by a downtrend; LH/LL (lower highs/lower lows) formation is observed at lower and upper swing points, trend integrity is maintained but critical support breakdowns should be monitored.

Market Structure Overview

ALGO’s current market structure reflects the dominant downtrend across 1D, 3D, and 1W timeframes. Price is trading at $0.12, with a 1.03% drop in the last 24 hours, stuck in the $0.11-$0.12 range. This structure shows lower highs/lower lows (LH/LL) pattern instead of higher highs/higher lows (HH/HL); meaning each new high is lower than previous highs, and each low is lower than previous lows. This is a classic sign of sellers in control. Supertrend gives bearish signal and price is positioned below EMA20 ($0.13), confirming short-term bearish structure. RSI at 38.99 is approaching oversold but momentum is negative (MACD histogram downward), MTF has 13 strong levels: 1D with 2 supports/4 resistances, 3D with 2S/2R, 1W with 2S/4R. Overall, downtrend intact; strong BOS (break of structure) required for bullish change.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For uptrend, HH/HL structure is sought: consecutive higher highs (higher peaks) and higher lows (higher troughs). ALGO currently lacks this; last swing low held at $0.1114 but no new higher low formed. Potential bullish signals limited: RSI near 39 at bottom could seek divergence, but price still failed to test $0.1210 swing high. Bullish continuation target $0.1725 (low score), but requires breaking $0.1210 and $0.2139 resistances first. Short-term, close above EMA20 ($0.13+) would be first HH signal, but currently distant.

Downtrend Risk

Downtrend clear with LH/LL: last swing high $0.1163 (lower than previous $0.1210), swing low $0.1051 (lower than previous lows). This pattern preserves trend’s bearish character (pre-CHoCH). MACD bearish crossover and negative histogram give momentum to sellers. 1W MTF has 4 dominant resistances, synchronized with BTC downtrend. Risk increase: break of $0.1114 forms new LL, opening path to bearish target $0.0600. Watch: $0.1051 support critical, break confirms downtrend with BOS.

Structure Break (BOS) Levels

BOS confirms trend change: For bullish BOS, price must break last swing high (e.g., $0.1210 or $0.1163) with weekly close and settle above – this forms HH and invalidates structure. Bearish BOS is break of last swing low $0.1114 or $0.1051; new LL extends downtrend. Key levels:

• Bullish BOS: $0.1210 (score 63/100) – targets $0.1725 on break.
• Bearish BOS: $0.1114 (60/100) and $0.1051 (66/100) – $0.0600 on break.
• MTF Additional: 1D resistances $0.1163/$0.2139, supports concentrated in 3D/1W.

For CHoCH (change of character), HL formation expected after bullish BOS; currently absent, trend remains bearish. These levels are key to structural integrity – speculation risky without break.

Swing Points and Their Importance

Recent Swing Highs

Recent swing highs confirm LH pattern:

• $0.1163 (score 69/100): Short-term resistance, tested but rejected – bearish rejection.
• $0.1210 (63/100): Main local peak, bullish BOS level.
• $0.2139 (62/100): Upper MTF resistance, must be broken for long-term target.

These LHs indicate weakening buyer strength; rejection observed with declining volume on each test.

Recent Swing Lows

Swing lows support LL structure, serving as support:

• $0.1051 (66/100): Critical support, bearish BOS level – panic selling if fails.
• $0.1114 (60/100): Near-term floor, below current price ($0.12).

These lows are buyers’ last lines of defense; holds offer HL opportunity, breaks extend LL. Educational note: Swing points determined with fractal structures – valid with 3+ bar confirmation.

Bitcoin Correlation

BTC at $88,821 (-2.40%) in downtrend, Supertrend bearish. Key supports $88,350/$86,637/$85,129; resistances $89,026/$90,985/$92,484. BTC dominance rise crushes altcoins – ALGO highly correlated (typical alt), BTC LH/LL pulls ALGO down. BTC break of $88,350 accelerates ALGO $0.1051 test; BTC $90,000+ recovery could trigger ALGO bullish BOS. Watch: ALGO recovery weak without BTC stabilization. Details in ALGO Spot Analysis and ALGO Futures Analysis.

Structural Outlook and Expectations

ALGO structure bearish: LH/LL intact, BOS awaited. Downtrend dominant – above $0.1210 required for bullish shift, below $0.1051 for bear continuation. MTF resistance dominance and BTC pressure increase risk. For trading: Longs above support, shorts below resistance; always use stop-loss with swing levels. Market dynamic, regular MTF checks essential. (Word count: 1127)