ALGOUSDT Short Scalping Opportunity – 4H Chart AnalysisThe ALGOUSDT pair is presenting a promising short-term setup for scalpers favoring a bearish outlook. After a short-lived bullish push, the price has failed to break above a critical resistance zone and now shows signs of weakness on the 4-hour chart.
The market structure remains fragile, with recent candles rejecting higher levels around $0.2314, indicating that sellers are regaining control. This resistance was previously a support zone, and the price is now struggling to reclaim it, suggesting a potential reversal point ideal for a short scalp setup.
Key Technical Zones
The most recent rejection confirms the $0.2314 level as a strong supply area. This price acted as support in early May but flipped into resistance after the sell-off on May 16. The zone has been tested again and rejected, further validating it as a solid barrier.
Meanwhile, two demand zones sit below the current price, offering logical targets for the upcoming move.
• Entry (Short): $0.2221 – $0.2223
This is the mid-range zone where the current rejection pattern is unfolding, and it aligns well with the last lower high.
• Stop Loss: $0.2314
Placed above the key resistance. If price breaks and holds above this level, the trade idea becomes invalid.
• Take Profit 1: $0.2105
This is the nearest recent support on the 4H timeframe and a reasonable level for short-term profit-taking.
• Take Profit 2: $0.1908
The second support zone sits lower, offering a more extended reward for traders holding longer or managing partial exits.
Price Action and Trend Behavior
The market has been forming a series of lower highs since May 12. The most recent bounce into resistance was weak, failing to establish new momentum. This confirms the idea that the bulls are running out of steam and sets up the conditions for a bearish continuation.
Volume and momentum indicators have also shown divergence from price, hinting at reduced buying pressure. Price is currently hovering just below the resistance, a typical behavior before a breakdown.
Risk and Reward
This setup provides a good risk-to-reward ratio:
• Risking approximately 91 pips from entry to stop loss
• Potential gain of 118 pips to TP1 and 215 pips to TP2
• RR ratio ranges from 1.29 (TP1) to 2.36 (TP2)
These figures make the trade suitable for scalpers looking for quick moves as well as short-term swing traders who can hold for deeper downside targets.
Trade Outlook
This short scalp aligns with the broader bearish sentiment forming in the altcoin space. ALGO is currently in a retracement phase and is reacting to resistance cleanly on the lower timeframes. If the pair remains below $0.2314, we could see increased selling pressure over the next few sessions.
Short-term traders may consider taking partial profits at TP1 and move the stop to breakeven if price reaches $0.2150 to lock in gains. Should the price fail to break below $0.2105, it may consolidate or retest resistance, in which case patience and discipline are key.
