Technical analysis by BrytJoy about Symbol ALGO: Buy recommendation (5/26/2025)

ALGOUSDT has officially broken out of a multi-month descending channel, signaling a shift in trend. After several failed attempts, price action finally pushed above both the channel resistance and the 50-day EMA (~$0.2197), confirming renewed bullish momentum. Following the breakout, ALGO completed a textbook retest of former resistance turned support around $0.2124. This zone now acts as a demand area and reinforces the bullish bias. The current price action near $0.2275 provides a favorable entry with a well-defined invalidation below $0.1908. 🎯 Trade Parameters Entry: $0.2250 - $0.2170 Stop Loss: $0.1908 Targets: • TP1 – $0.2621 • TP2 – $0.3000 • TP3 – $0.3320 Risk/Reward: ~3:1 Potential Upside: +54.85% 📌 Why This Setup? ✅ Breakout + Retest: Clean structure, respecting trendlines and horizontal zones. ✅ Above EMA: Price now trading above 100EMA, flipping it into dynamic support. ✅ Volume Support: Increased volume during breakout validates buyer strength. ✅ Clear invalidation: A move below $0.1908 invalidates the setup. Summary: With a favorable risk/reward and strong technical signals, ALGO/USDT offers a compelling swing trade opportunity. Maintain discipline on stop loss and trail profits as targets are approached.