ALGO Oversold? RSI and Stoch Reset Point to Bounce

3 mins mins

Key Insights

ALGO/BTC breaks long-term trendline as RSI stays strong and Stoch RSI resets for upside.
ALGO price holds between 50- and 100-day SMAs, reflecting consolidation and directional indecision.
Algorand processes 18 TPS with 2.8s block time, maintaining fast and stable network performance.

*ALGO Oversold? RSI and Stoch Reset Point to Bounce*

Algorand (ALGO) was trading at $0.2534 at press time, recording a 6% decline over the last 24 hours and a 2% drop for the week. Despite the recent price weakness, technical and network data suggest conditions that may support a potential bounce if momentum returns.

Oscillators Signal Possible Reversal on ALGO/BTC Pair

On the ALGO/BTC 3-day chart, the pair has moved above a long-term descending trendline and is consolidating near the 0.00000220 BTC level. This price zone is currently acting as a short-term pivot between local support and resistance.

Momentum indicators show early strength. The Relative Strength Index (RSI) stands at 53.2, staying above the neutral 50 mark. This reflects moderate bullish momentum.

At the same time, the Stochastic RSI has reset toward the oversold area, which traders often interpret as potential for upward movement. “RSI is still holding above 50 while the Stoch RSI has reset,” noted one analyst, suggesting momentum may be rebuilding.

$ALGO / $BTC – 3D

Oscillators look good here

RSI is still holding above 50 while the Stoch RSI has reset pic.twitter.com/FG3qvwo0YZ
— EngineeringHere (@Engineeringhere) August 18, 2025

On the ALGO/USDT daily chart, price remains supported by mid-term trend levels. ALGO is trading between the 50-day SMA at $0.2547 and the 100-day SMA at $0.2464. This positioning reflects neutral market sentiment, as the asset hovers between support and resistance without a clear directional trend.

Network Activity Remains Efficient

Despite price fluctuations, on-chain performance shows continued network strength. According to recent network statistics, Algorand is processing an average of 18 transactions per second (TPS), with a block time of approximately 2.82 seconds. Both metrics have remained steady across 100 blocks, indicating consistent throughput and stability.

A real-time chart confirms that TPS has been flat, and block confirmation speed has remained close to 3 seconds. These readings support the view that Algorand continues to function efficiently under current load. One observer commented, “$ALGO is still one of the most efficient L1s out there,” referencing its performance metrics.

Market Awaits Directional Confirmation

While technical and on-chain indicators suggest possible support for a bounce, ALGO remains range-bound. A move above the 50-day SMA or below the 100-day SMA may define the next short-term trend.

Until then, traders are watching closely for confirmation through volume or broader market activity.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.