Traders Eye Algorand's Pennant Retest as Bullish Breakout Signal

Algorand (ALGO) has shown notable price strength in recent days, with bullish chart patterns suggesting a potential 50% price increase. The cryptocurrency's price has retested a bullish pennant pattern, a technical formation typically seen as a precursor to an upward breakout. Current data indicates that 1 ALGO is trading at $0.2638, with the 24-hour trading volume reaching $72.79 million across exchanges like OKX and Kraken [1]. The retest of the pennant pattern, coupled with the asset’s 1% increase over the past seven days, has drawn attention from traders and investors who see the pattern as a sign of continued upward momentum [1].

The market capitalization of Algorand stands at approximately $2.3 billion, with a circulating supply of 8.72 billion tokens out of a maximum supply of 10 billion. The fully diluted valuation (FDV) is nearly identical to the current market cap, indicating that a significant portion of ALGO tokens are already in circulation [1]. This dynamic is a key factor in assessing the asset’s potential for growth, as it suggests limited supply expansion in the near term.

Recent price movements have demonstrated volatility, with the price fluctuating between a high of $0.2663 and a low of $0.2381 in the past week. The most significant 24-hour movement occurred on August 21, 2025, when ALGO surged by 7.8% to $0.2567. This upward shift occurred within a broader context of declining crypto market sentiment, where most major cryptocurrencies have underperformed over the past 30 days [1]. The ability of ALGO to show relative strength in a bearish environment has reinforced the bullish interpretation of the pennant pattern.

Analysts suggest that the retest of the pennant pattern could serve as a confirmation signal for a breakout, which may push the price higher in the near term. While the all-time high for ALGO remains at $3.56, a 50% gain from the current price would bring the token to approximately $0.3957, a level that would still be far from its historical peak. However, reaching that level would mark a significant milestone for the asset and could attract broader institutional attention [1].

The retest has also highlighted the growing interest in Algorand, with over 284,796 users adding the token to their portfolios on platforms like CoinGecko. The increasing number of traders and investors monitoring ALGO suggests a growing sentiment that the asset may be entering a more bullish phase. The technical strength displayed in the recent price action, particularly the ability to hold key support levels during the pennant retest, has been interpreted as a sign of strong buyer interest [1].

While the price of Algorand has shown positive momentum, it is important to note that market conditions remain volatile. The cryptocurrency market as a whole has faced regulatory scrutiny and macroeconomic headwinds, which could influence the broader context in which ALGO trades. However, the specific retest of the pennant pattern, along with the current price structure, suggests that the token may be poised for a meaningful upward move in the coming weeks, provided the breakout is confirmed and supported by sustained volume [1].

Source: [1] ALGO to USD: Algorand Price in US Dollar (https://www.coingecko.com/en/coins/algorand/usd)