Algorand Plots a Cup-and-Handle Recovery — But Whales Are Still Holding the Spoon �️

Algorand [ALGO] is trading roughly 15% above its late-March all-time low as the altcoin attempts a recovery against the backdrop of a broader market downturn. The asset's chart structure continues to show two bullish formations on the higher timeframe: a Symmetrical Triangle and a Cup-and-Handle pattern, both historically associated with subsequent rallies. A break above the descending resistance line would be required to confirm either setup, according to technical analysis of the chart.

In the short term, ALGO has entered a key supply zone where sellers stepped in and triggered the latest pullback. The $0.092 level remains a critical support area, and a defense of that floor could allow the token to rebound toward overhead resistance. A rejection at that level, however, would risk a return to the Symmetrical Triangle's lower trendline. A decisive drop below $0.088 would invalidate both bullish structures and increase the likelihood of further downside. Momentum indicators offer a mixed but cautiously constructive picture. The Moving Average Convergence Divergence (MACD) recently formed a golden cross, with the MACD line moving above the signal line, a configuration that often reflects strengthening buying pressure. Both lines are approaching positive territory, and a move above zero would reinforce the bullish case. The Relative Strength Index, meanwhile, is hovering near neutral, leaving momentum balanced and ALGO without a clear directional bias.

On-chain data points to ongoing selling pressure. Spot Netflows recorded $1.75 million in net outflows over the past 15 days, following a larger $29.23 million sell-off. The whale-versus-retail delta indicates that larger holders remain the dominant force in ALGO's market activity, suggesting that buying pressure may stay limited unless whale participation increases or retail demand strengthens. The token continues to show early signs of recovery, though the defense of key support levels and the trajectory of whale activity remain the central variables for any sustained upside move.