Algorand/Tether (ALGOUSDT) Market Overview

• Algorand/Tether (ALGOUSDT) traded in a 0.217–0.2305 range, ending near the upper end of the day's range.
• Price showed a late-day breakout with bullish momentum confirmed by RSI and MACD.
• Volatility expanded in the last 12 hours, with volume surging after 14:00 ET.
• Key support at 0.220–0.221 appears intact, with potential for further bullish extension.
• Bollinger Bands widen as price diverges from the midline, suggesting trend continuation is likely.

Algorand/Tether (ALGOUSDT) opened at 0.2233 on October 5 at 12:00 ET and closed at 0.2296 on October 6 at the same time. The 24-hour range was 0.217–0.230, with a final close near the high. Total volume was 18.7 million ALGO, and notional turnover was approximately $4.4 million, indicating strong participation in the late-day rally.

Structure & Formations

Price found early morning support at 0.220 and moved into a bullish accumulation phase by late afternoon. A strong bullish breakout emerged after 14:00 ET, with price forming a series of higher highs and higher lows. Notable candlestick patterns include a bullish engulfing pattern at 14:30 ET and a tall-bodied bullish candle at 16:00 ET, suggesting strong conviction in the uptrend. Key support levels are at 0.221 (38.2% Fib) and 0.220 (61.8% Fib), both of which held during earlier selloffs. Resistance now appears to be at 0.230 and beyond.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs are both bullish, with price above both and rising. This confirms the short-term bullish bias. On the daily chart, price is trading above the 50-period and 200-period SMAs, suggesting that the longer-term trend is also constructive. The 100-period MA is slightly lagging but aligning with the upward trend, reinforcing the view that the trend is likely to continue.

MACD & RSI

The 15-minute MACD turned positive after 14:00 ET, with the histogram expanding and confirming the bullish breakout. RSI rose into overbought territory (~65–70) in the last 2 hours, suggesting momentum is still intact, though caution is warranted. Divergence between price and RSI is not observed, which is a positive sign for trend continuation. A break above 0.230 could see RSI move into 70+ territory, indicating a high-risk overbought condition.

Bollinger Bands

Bollinger Bands have widened significantly as volatility increased late in the session. Price is currently trading near the upper band, which is bullish in a trending environment. A strong close above the upper band may signal further upward expansion, while a retest of the midline could offer a short-term pullback opportunity. The band width expansion suggests higher-than-normal volatility, likely driven by macro or market sentiment.

Volume & Turnover

Volume spiked after 14:00 ET, with the largest 15-minute bar registering 1.47 million ALGO (16:45 ET). This coincided with a sharp price move from 0.226 to 0.228. Turnover followed a similar trajectory, surging from $100k to over $300k during this period. The alignment of rising price, volume, and turnover is a strong confirmation of the bullish breakout. However, overbought RSI and the potential for profit-taking may cap further immediate gains.

Fibonacci Retracements

The key Fibonacci levels (38.2% and 61.8%) from the recent 0.217–0.230 swing are at 0.221 and 0.220 respectively. These levels held during earlier sell-offs and now act as potential psychological support. On the upside, the next key resistance lies at 0.230 and beyond. If price pushes past 0.230, a 127% extension to ~0.236 could become relevant, though this would require sustained momentum.

Backtest Hypothesis

Given the current setup—price above key moving averages, aligned RSI and MACD, and strong volume confirmation—a potential backtest hypothesis would be to enter long on a close above 0.221 with a stop below 0.220, targeting 0.227 and then 0.230. This strategy would be most effective in a trending environment where volatility remains above average, as seen in the last 12 hours. A trailing stop at the 15-minute high could help lock in gains while maintaining exposure to further upside. The presence of a strong 15-minute bullish breakout candle and divergence-free momentum indicators supports this setup.