Algorand’s recent price recovery has pushed it closer to a crucial resistance level around $0.15. The market has shown some strength midweek, with seven consecutive days of green candles following a period of price weakness at the end of August.
Increasing Number of ALGO Wallets Despite Price Challenges
Despite the subdued market performance, Algorand has experienced a steady growth in the number of wallets throughout the year.
According to data from IntoTheBlock, the number of ALGO addresses with a balance has increased by 990K this year. In the last 7 days alone, the total addresses with a balance rose from 21.26 million on September 17th to 21.51 million currently.
This surge in ALGO adoption indicates a growing interest in the blockchain ecosystem, even though a majority of token holders are currently at a loss. Only 1.87 million addresses are in profit, representing just 9.01% of all holders based on IntoTheBlock’s data.
Technical Analysis of ALGO
At the time of writing, Algorand (ALGO) was trading at $0.14 and facing downward pressure below the 200-day exponential moving average (EMA).
From a technical perspective, ALGO/USD is approaching a critical resistance range between $0.149 and $0.152, which aligns with the 200-EMA. This zone has posed a significant challenge for the past three months since ALGO dropped below this moving average on June 7th.
To confirm a bullish trend, ALGO/USD would need to surpass this resistance zone. Previous attempts to breach this level on July 14th and July 22nd were short-lived, with the most recent effort on August 26th also falling short.
Breaking above this zone is crucial for ALGO bulls, potentially enabling further gains above $0.160 and putting nearly 140K addresses in profit, whose holdings currently total 743.62 million ALGO according to IntoTheBlock.
Growing Market Capital in Stablecoins
Algorand has witnessed a significant increase in stablecoin market capital during August, as highlighted in the recent Algo insights report. The total market capital of stablecoins on the network denominated in USD surged from 85.53 million to 109.90 million, marking a 28.5% growth.
Additionally, the total USDC transactions spiked from 557K to 690K within the same period. This development is noteworthy, especially after Binance introduced cross and margin USDC pairs for ALGO on August 30th, coinciding with Tether’s decision to discontinue support for USD₮ on the Algorand blockchain.
While Tether’s transparency data reveals $119.2 billion of USDT circulating across various chains, the net circulation of USDT on Algorand currently stands at $2 million. Tether has announced plans to freeze all remaining USD₮ on Algorand by September 2025.