Japanese crypto exchange CoinTrade announced the launch of staking for Algorand on Wednesday, June 17th, offering an annual percentage rate of 4.4%. According to reports from AMBCrypto, this staking launch combined with oversold conditions may have contributed to recent price gains for the $875 million market cap Layer-1 token. The staking yield announcement comes as the cryptocurrency was positioned in a long-term downtrend, with technical analysts noting potential for recovery from current oversold levels.
Technical analyst Chart Nerd from AMBCrypto identified Algorand as being in a massive, multi-year falling wedge from the 2021 highs, with current support established at the $0.08-$0.085 area. The analysis suggests that based on Elliot Wave Theory, a fifth wave downward to $0.057 is possible, which could represent the final sweep of the cycle's low and result in a bullish breakout from the wedge pattern in the long-term. The analyst concludes that the final leg downward is brewing and could arrive later in 2026.
According to the technical analysis, Algorand experienced a retracement below the $0.10 round-number support that saw a bounce over the past week. The Moving Average Factor (MFI) fell into oversold territory but has since climbed back toward the neutral zone, while the On Balance Volume (OBV) was steadily climbing higher. The 3-month Spot Taker CVD showed neither buyers nor sellers had the upper hand, running against the OBV's uptrend in recent months. The swing points on the 1-day timeframe were identified at $0.145 and $0.079.
As reported by AMBCrypto, the $0.095 and $0.105 areas represent nearby support/resistance zones to monitor. If the $0.105 former demand, now supply zone, is cleared, it would indicate a move as high as $0.128 is possible based on retracement levels. The analysis suggests that traders should be wary of going long given the wider crypto market sentiment, but also should not FOMO into an Algorand relief rally if it occurs. The higher timeframe trend remains bearish, but a bounce past $0.105 and as high as $0.128 represents a potential recovery scenario.
