On Wednesday, the 17th of June, Japanese crypto exchange CoinTrade announced the launch of staking for Algorand. The annual percentage rate of the staking yield would be 4.4%, the announcement revealed.
The $875 million market cap Layer-1 token was in a long-term downtrend, pointed out technical analyst Chart Nerd in a post on X.
The massive, multi-year falling wedge from the 2021 highs. The current support was at the $0.08-$0.085 area.
Based on Elliot Wave Theory, a fifth wave downward to $0.057 is possible.
Such a drop could be the final sweep of the cycle’s low and could result in a bullish breakout from the wedge in the long-term, the analyst concluded.
As things stand, the final leg downward is brewing and could arrive later in 2026. Here are the important support and resistance zones to watch out for in the coming days and weeks.
Algorand might see a bounce from oversold territory
The swing points on the 1-day timeframe were at $0.145 and $0.079.
Marked in orange, neither level has been disturbed. The rally in April, which came as a result of the chain’s readiness for post-quantum computing, did not threaten the swing high set earlier in 2026.
The recent retracement below the $0.10 round-number support saw a bounce over the past week. The MFI fell into oversold territory but has since climbed back toward the neutral zone.
Meanwhile, the OBV was steadily climbing higher.
The 3-month Spot Taker CVD showed neither buyers nor sellers had the upper hand. The idea ran against the OBV’s uptrend in recent months.
Traders’ call to action- Wait for a bounce to sell
The $0.095 and $0.105 areas were the nearby support/resistance zones to watch. If the $0.105 former demand, now supply zone, is cleared, it would indicate a move as high as $0.128 is possible, based on the retracement levels plotted.
Traders should be wary of going long given the wider crypto market sentiment, but also should not FOMO into an Algorand [ALGO] relief rally if it occurs.
Final Summary
- The Algorand staking launch on CoinTrade, combined with oversold conditions, could have helped during the recent days’ gains.
- The higher timeframe trend remained bearish, but a bounce past $0.105 and as high as $0.128 was possible.
