ALGO – Falling Wedge at Macro Support | Reversal or Breakdown?

ALGO has been in a clear downtrend for an extended period, but price is now compressing inside a falling wedge, a pattern that often precedes a bullish reversal.

Price is currently testing a major horizontal support zone aligned with previous macro lows. At the same time, price remains below the SMA 40 and EMA 150, confirming that higher-timeframe momentum is still bearish. As long as these moving averages are not reclaimed, caution is warranted.

🔍 Scenarios:

Bullish scenario:
– Breakout above the falling wedge
– Reclaim of the EMA 150
– First targets toward prior range highs

Bearish scenario:
– Loss of current support
– Acceleration to the downside toward lower liquidity zones
– Wedge failure → trend continuation

This is a key decision area: either a structural trend reversal, or one final flush before a potential bottom forms.