The cryptocurrency market remains under pressure despite positive developments across key projects. While Bitcoin and Ethereum ETFs added significant assets recently—over $102 million for BTC-linked ETFs and more than $31 million for ETH-based funds—investor sentiment continues to reflect caution. Major Layer-1 and Layer-2 protocols like Algorand (ALGO), Arbitrum (ARB), and Polygon (POL) have seen prolonged bearish trends, yet technical indicators suggest potential reversals on the horizon.
This analysis dives into the price dynamics, on-chain metrics, and chart patterns of these three prominent digital assets, offering insights into possible breakout levels and downside risks.
Algorand Price Technical Analysis
Algorand’s price has been in a sustained downtrend over recent months, mirroring challenges within its ecosystem. Daily active addresses have declined to approximately 134,000, while transaction fees paid per day have also weakened—both signs of reduced network activity.
The token initially reached a high of $0.6116 in November last year before dropping sharply to its current level near $0.1870. This decline pushed ALGO below both the 50-day and 200-day exponential moving averages (EMAs), signaling bearish dominance in the market.
A crucial support level at $0.2580—the swing high from May 10—has been breached, indicating further weakness. However, a potential double bottom pattern is forming around $0.1447, which marked the lowest swing point on April 7. In technical analysis, a double bottom is a reversal pattern characterized by two distinct lows at roughly the same price level, with a neckline resistance above—in this case, at $0.2580.
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If ALGO holds above the $0.1447 support zone, it could trigger a bullish recovery toward the neckline. A breakout above $0.2580 would confirm the pattern and potentially open the door for a move back toward $0.40 or higher. Conversely, failure to defend $0.1447 may lead to additional downside pressure, with the next major support located at $0.1065—the lowest level seen in August of the previous year.
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Arbitrum Price Technical Analysis
Arbitrum, currently the second-largest Layer-2 network by total value locked (TVL) after Base, has struggled this year despite strong fundamental progress. On-chain data reveals growing adoption: stablecoin supply on Arbitrum rose 4.13% in June to $6.7 billion, transaction count increased by 6.2% to 33.4 million, and stablecoin holder addresses surged 22% to 1.4 million.
Moreover, the cleaned transaction volume jumped 37% to $46.7 billion, reflecting stronger economic activity within the ecosystem.
A major catalyst emerged when Robinhood announced integration with Arbitrum to launch tokenized stocks in regions including Europe. This move bridges decentralized finance (DeFi) with traditional finance (TradFi), potentially bringing millions of new users on-chain.
Despite these positives, ARB’s price has declined significantly, failing to capitalize on the news. The daily chart shows a developing double bottom formation with lows near $0.2490 and a neckline resistance at $0.5050.
This pattern is widely regarded as one of the most bullish reversal signals in technical analysis. As long as the price remains above the double bottom support, the odds favor a recovery attempt toward $0.5050. A confirmed breakout above that level could accelerate momentum, possibly targeting previous resistance zones.
However, if selling pressure returns and ARB breaks below $0.2490, bearish momentum may resume, opening risk toward lower supports.
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Polygon Price Technical Analysis
Polygon, once the pioneer of Layer-2 scaling solutions for Ethereum, has faced a steep correction over the past several months. After peaking at $0.7672 in December last year, POL has dropped to around $0.1820—a decline of more than 75%.
Like ALGO and ARB, Polygon’s price is trading below key moving averages—the 50-day and 25-day EMAs—indicating ongoing bearish control. However, there are early signs of stabilization.
A potential double bottom is forming near $0.1500, with the neckline resistance positioned at $0.2755. If POL maintains support above $0.1500, a bounce toward the neckline becomes increasingly likely.
Additionally, the current price remains below the 23.6% Fibonacci retracement level, suggesting that broader sentiment is still cautious. A close above this Fibonacci threshold would be an early signal of renewed buyer interest.
Successful reclamation of $0.2755 could pave the way for further upside, potentially revisiting $0.40 or higher depending on overall market conditions and ecosystem growth.
On the flip side, a breakdown below $0.1500 would invalidate the bullish setup and expose deeper downside targets.
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Frequently Asked Questions (FAQ)
Q: What is a double bottom pattern in crypto trading?
A: A double bottom is a bullish reversal pattern where an asset forms two distinct lows at approximately the same price level, followed by a breakout above the resistance (neckline). It often signals the end of a downtrend and the start of an uptrend.
Q: Is Algorand a good long-term investment?
A: Algorand's long-term potential depends on ecosystem adoption, developer activity, and macro market trends. While current technicals are weak, a confirmed reversal above key resistance could renew investor confidence.
Q: Why is Arbitrum falling despite Robinhood’s partnership?
A: Market reactions don’t always align immediately with news events. Broader macro factors, profit-taking after rallies, and overall risk sentiment can delay price responses—even to positive developments.
Q: Can Polygon recover in 2025?
A: Recovery is possible if Polygon regains momentum through product innovation, increased DeFi integration, and improved network usage. Technically, holding above $0.1500 is critical for any meaningful rebound.
Q: How do moving averages help in crypto analysis?
A: Moving averages smooth price data over time and help identify trends. Prices below EMAs suggest bearish momentum, while crosses above may signal bullish reversals.
Q: Where can I track real-time data for ARB and POL?
A: Real-time price charts and on-chain metrics are available through platforms like TradingView and blockchain analytics tools—essential for informed decision-making.
With all three assets showing signs of bottoming out through double bottom formations, traders should monitor key support and resistance levels closely. While bearish pressure persists, these patterns offer hope for recovery if broader market sentiment improves.
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