Algorand/Tether Market Overview (ALGOUSDT) – October 26, 2025

• ALGOUSDT formed a bullish recovery after a sharp dip, with price closing near 0.1897.
• RSI signaled overbought conditions during the afternoon, hinting at near-term consolidation.
• Volume spiked during the 14:30–15:45 ET window, confirming a key breakout above 0.19.
• Bollinger Bands widened overnight, reflecting increased volatility in the early morning session.
• A strong 52,628.0 volume candle at 13:30 ET marked a key high near 0.1903, suggesting accumulation.

Opening Snapshot

At 12:00 ET–1 on October 25, ALGOUSDT opened at 0.1851 and traded as low as 0.1835 before surging to a 24-hour high of 0.1903. The pair closed at 0.1897 at 12:00 ET on October 26, with total volume hitting 11,094,132.0 and a notional turnover of approximately $2,104,406.97. This marked a strong 5.17% rise over 24 hours, driven by sustained buying pressure in the afternoon and early evening.

Structure & Formations

The 15-minute chart revealed a distinct bullish reversal pattern around 13:30 ET, where a large bullish candle (0.1891–0.1903) confirmed accumulation after a mid-day pullback. A key support level appears to have formed around 0.1885–0.1889, as price found buying interest multiple times. A doji formed at 20:30 ET, suggesting indecision after a strong advance to 0.1871. This could signal a potential pause or consolidation phase.

Moving Averages

Short-term momentum favored buyers, with the 20-period moving average (20SMA) crossing above the 50SMA in the early afternoon, confirming a bullish crossover. The daily 50SMA at 0.1865 and 200SMA at 0.1847 acted as psychological levels. Price traded well above both, suggesting medium-term bullish bias. A continuation above 0.1880 could target 0.1915 next, while a drop below 0.1865 may reignite bearish pressure.

MACD & RSI

The MACD crossed above zero at 14:30 ET and maintained a bullish histogram through 16:00 ET, aligning with the breakout above 0.19. RSI reached overbought territory at 75–80 during the late afternoon, suggesting caution for short-term traders. RSI’s pullback below 70 has yet to occur as of 16:00 ET, leaving open the question of whether this was a breakout or a false rally. A return to 60–65 would be seen as confirmation of a healthy rally.

Bollinger Bands

Bollinger Bands showed a clear expansion overnight, with price trading near the upper band from 03:00–05:00 ET before consolidating. A sharp breakout above the upper band occurred at 13:30 ET, signaling a move to a higher volatility regime. The width of the bands increased to 0.0045 during the 23:00–00:00 ET window, suggesting strong market positioning. Price remains within the bands, maintaining technical validity.

Volume & Turnover

Volume surged during the 14:30–15:45 ET window, peaking at 526,281.0 at 13:30 ET. This coincided with a sharp price rise to 0.1903, confirming institutional participation. Turnover during this period also spiked, aligning with price action. A volume divergence emerged after 15:45 ET as turnover declined while price remained near 0.19, hinting at potential exhaustion. However, buying pressure returned with volume above 180,000 at 14:30 and 15:15 ET, supporting the bullish narrative.

Fibonacci Retracements

A key retracement level of 61.8% (0.1881–0.1884) held firm on multiple occasions, with price rebounding each time. The 38.2% level at 0.1895 was briefly tested at 15:15 ET but failed to hold. The 100% extension level now sits at 0.1915, which may act as resistance in the next 24–48 hours. A break above this level would validate a full retracement of the prior correction from 0.1835 to 0.1885.

Backtest Hypothesis

Given the strong RSI overbought conditions and volume spikes, a backtest strategy using RSI crossovers (buy at RSI > 70, sell at RSI < 70) could be evaluated. However, the recent surge has left RSI above 70 as of the latest data point, with no matching sell signal yet. The backtest engine has paused due to this open position. One approach is to auto-close the position at the end of the 24-hour window (2025-10-26) to complete the test. Alternatively, extending the test period until RSI < 70 is met could offer a more accurate assessment of the strategy’s performance. Choosing the former ensures timely execution and allows for immediate retesting with updated data.