ALGO Weekly Analysis Feb 4

ALGO is showing weak performance at the $0.10 level with a weekly 0.95% decline; while the main trend continues downward, BTC’s bearish structure creates additional pressure on altcoins. Critical supports are being tested at $0.0947, a breakdown could accelerate downward momentum.

Weekly Market Summary for ALGO

ALGO traded in a narrow $0.10-$0.11 band last week and remained within the primary downtrend with a 0.95% loss. Volume stayed low at the $38.60M level, while RSI at 37.80 shows momentum approaching oversold. Market structure is bearish; no close above EMA20 ($0.11), MACD giving a sell signal with a negative histogram. In the big picture, ALGO is far from the accumulation phase, exhibiting distribution characteristics. For position traders, follow the detailed ALGO spot analysis.

Trend Structure and Market Phases

Long-Term Trend Analysis

The long-term trend structure shows a clear downtrend; lower highs and lower lows formation dominate on higher timeframes (1W/1M). ALGO has declined more than 80% from 2025 highs and the trend filter gives a bearish signal. In the market cycle context, we are in a correction phase similar to crypto winter; in the macro context, increasing BTC dominance is pressuring altcoins. Questioning trend persistence until the $0.1593 resistance is broken would be wrong – the downtrend is currently intact, with short bias prominent for position traders.

Accumulation/Distribution Analysis

Volume profile shows a low-volume narrow range, lacking accumulation phase characteristics; on the contrary, distribution patterns are emerging around $0.11 – smart money outflow signals. According to Wyckoff methodology, the markdown phase continues; a spring test may occur at $0.0947. For accumulation, volume increase and higher lows are required; the current setup indicates bearish continuation.

Multi-Timeframe Confluence

Daily Chart View

On the daily chart, ALGO is within a bearish channel below EMA20 ($0.11); no RSI divergence, MACD histogram expanding negatively. There are 11 strong level confluences: 2 supports ($0.1040, $0.0947) and 2 resistances ($0.1347, $0.1593) on 1D. Short-term momentum is weak, breakdown risk is high – confluence support cluster at $0.0947 (76/100 score).

Weekly Chart View

From a weekly perspective, the downtrend is intact; rejected at lower high $0.13, weekly close below $0.10 confirms bearish. On 1W timeframe, 2 supports and 3 resistances dominate, multi-timeframe confluence is bearish. For long-term portfolios, $0.0514 downside risk should not be ignored (22 score).

Critical Decision Points

Main supports: $0.0947 (76/100, major confluence), $0.1040 (70/100). Breakdown below $0.0947 opens the path to $0.0514. Resistances: $0.1347 (60/100), $0.1593 (65/100, upside objective 31 score). Market structure suggests a bullish flip with “holding above $0.1040”; staying below preserves the downtrend. For leverage positions, these levels are inflection points with ALGO futures market data.

Weekly Strategy Recommendation

In Case of Rise

Bullish scenario: Weekly close above $0.1040 + volume increase leads to short-covering rally to $0.1347 (R/R 1:2+). Target $0.1593, stop below $0.0947. Supported by BTC $77k+ recovery; position traders should wait for EMA20 breakout for long bias.

In Case of Fall

Bearish scenario (high probability): Breakdown of $0.0947 leads to $0.0514 downside (R/R 1:3). Short positions from $0.1040, targets $0.0947-0.0514, stop above $0.11. BTC downtrend drags altcoins; risk management is priority.

Bitcoin Correlation

BTC at $75,178 with -3.43% decline in downtrend; supertrend bearish, dominance increase pressuring ALGO. If BTC key supports $75,211 / $72,946 break, cascade selling in altcoins; recovery above resistances $77,864 / $82,178 triggers ALGO $0.13 test. Correlation high (~0.85), BTC below $72k is major risk for ALGO – position sizing should be adjusted accordingly. Monitor BTC dominance for ALGO and other analyses.

Conclusion: Key Points for Next Week

Next week focus: $0.0947 support test and BTC $75k hold. Breakdown accelerates downward momentum; hold + BTC bounce creates bounce opportunity. Monitor volume and closes – strategic patience is key, avoid early entries. In the macro cycle, altseason is distant, prefer defensive positions.