Market Overview for Algorand/Tether (ALGOUSDT)

Summary
• Price action showed consolidation after an early morning rebound.
• High volume during the afternoon ET failed to push price above 0.1625.
• RSI and MACD suggest overbought conditions in the morning, but momentum weakened by late ET.

Algorand/Tether (ALGOUSDT) opened at 0.1607 at 12:00 ET on 2025-11-05 and closed at 0.1578 by 12:00 ET on 2025-11-06. The 24-hour range was 0.1631 to 0.1556, with a total traded volume of 17.07 million ALGO and a notional turnover of $2.71 million.

The price formed a broad consolidation pattern throughout the day, with a failed attempt to break above 0.1625 during the early afternoon. A bearish engulfing pattern formed after 21:30 ET, and the price remained below the 20-period moving average for the rest of the session. The 50-period MA acted as a resistance level, while the 200-period MA remained above the 0.1605 level.

Volatility was elevated early in the session, with Bollinger Bands expanding as the price tested the upper band. A contraction followed in the early morning hours, signaling a potential shift in trend. The RSI moved above 70 during the morning, indicating overbought conditions, but failed to generate follow-through buying momentum. MACD crossed below the signal line during the late ET hours, reinforcing bearish sentiment.

Price action on the 15-minute chart revealed a key support level at 0.1575–0.1580, where the price found a temporary floor after a sharp decline in the late afternoon. The Fibonacci retracement levels from the morning high at 0.1631 showed the 61.8% level at 0.1604 and the 38.2% level at 0.1617, both of which acted as barriers for bullish momentum. The 0.1596–0.1604 range appears to be a critical area for potential reversal or continuation of the current downtrend.

Backtest Hypothesis
The backtesting strategy described appears to align with the observed momentum shifts in ALGOUSDT over the 24-hour period. For example, an overbought signal could have been triggered when RSI crossed above 70 in the early morning hours, potentially prompting a sell at the next open. Later, as RSI fell below 30 during the late afternoon, an oversold condition was evident, which may have signaled a buying opportunity. However, since no RSI values are provided in the data, this analysis is hypothetical. If RSI data were available, we could apply the strategy to determine its effectiveness in capturing short-term reversals. This approach may be refined by adjusting the RSI thresholds or incorporating stop-loss and take-profit levels to manage risk.