ALGO has been in a clear downtrend for a long time, but the price is now pressing inside a descending wedge, a pattern that often precedes a bullish reversal.
The price is currently testing a key horizontal support area consistent with previous lows. At the same time, the price remains below the SMA 40 and EMA 150, confirming that the momentum on the higher time frame is still bearish. As long as these moving averages are not reclaimed, caution is advised.
🔍 Scenarios:
Bullish scenario:
– Break above the descending wedge
– Recover EMA 150
– First targets towards previous range highs
Bearish scenario:
– Loss of current support
– Accelerating downwards towards low liquidity areas
– Wedge failure → trend continuation
This is a key decision area: either a structural reversal of the trend, or a final flow before forming a potential bottom
⚠️ Note:
This analysis is for educational purposes only and does not encourage trading futures or any prohibited transactions. The aim is to clarify potential market movement, not a direct recommendation to buy or sell.
💡 Important notes:
- This analysis is for educational purposes only.
- Please study the market and make decisions based on your ability and risk tolerance.
- The author is not responsible for others' trading or their profit results.