The technical chart suggests that Algorand (ALGO) has the potential to tag the $1.00 milestone again. The downswings since February 8 can be confined within a descending channel , with the swings getting shorter in magnitude and the momentum drying out.

Algorand Descending Channel
After reaching the lower support trendline, the ALGO price bounced, and we’re now looking for a possible retest of the upper resistance trendline, which falls near the $1.00 psychological level.

The current bounce is also supported by the RSI oscillator, which broke above the 50 mid-level. The last time the RSI broke above the 50 mid-level on March 21, ALGO’s price retested the upper resistance trendline.

The pattern, if confirmed, could set off a much larger rally in the coming months. However, for a meaningful reversal, we would need a daily break and close above the descending channel but, more importantly, above $1.00.

We also have a massive bullish divergence between the price and the RSI oscillator, which highlights the exhaustion of selling pressure. This is a significant price development because it has the potential to call for a potential bullish reversal.

Looking forward: We have to keep in mind that the overall trend is bearish as we’re still trading below the 200-day simple moving average , and in terms of the price structure, we are still following a bearish path. However, we might be in the process of a reversal if the pattern highlighted above is triggered.