Algorand: Potential 60% Breakout If Key Level is Broken
Algorand, also known as ALGO, saw a rise of more than 14% in its value and trading volume on a daily basis spiked equally, according to data from CoinMarketCap. This increase aligns with the ongoing bullish trend in the alternative coin market.
ALGO has been trading within a critical range of $0.39 to $0.32. Over the past few weeks, ALGO has repeatedly tested both the upper and lower limits of this range, suggesting a balance between buyers and sellers.
This trading pattern hints at a potential significant price movement in the near future.
If ALGO manages to break above the resistance level of $0.39, it could see a rapid price increase of around 60%, with a target to hit higher price levels based on past market reactions in similar situations.
On the other hand, a drop below $0.32 could initiate a bearish trend, potentially leading to further price declines. These price movements could strongly impact the market direction of ALGO in the short to medium term, providing trading opportunities for investors.
The current state of the market indicates that a major move is imminent for ALGO, pending its ability to sustain above $0.39 or fall below $0.32.
Increasing Active Addresses and Profitability for ALGO
Aiding the positive outlook is the noticeable increase in daily active addresses for ALGO, rising by 15.93% in the past week after a stagnant period since July 2024.
New addresses surged by more than 58%, coinciding with a 64.16% rise in zero-balance addresses, indicating heightened interest and potential speculative activities in the market. Sustained growth in these metrics is crucial for ALGO to realize its price potential.
After hovering around $0.30, the price of ALGO reacted positively in the recent two days, reaching as high as $0.48.
This movement suggests a change in market sentiment, where increased address activity might pave the way for further price appreciation.
Further examination of ALGO’s active addresses based on profitability indicates that 80.79% of addresses are currently profitable, with investments exceeding their purchase price, while 9.47% are in a loss position. The remaining 9.74% are at the breakeven point. At present, ALGO’s price has climbed from $0.34 to $0.395902 in the last 48 hours, confirming this positive trend.
A high proportion of profitable addresses typically indicates a strong base of holders who can withstand selling pressure and support the price, hinting at the potential for ALGO to break out and surge by over 60%.
However, profit-taking actions might occur if ALGO continues its upward trajectory, potentially causing short-term market fluctuations. Nevertheless, the upward trend is expected to continue if buyers maintain their momentum.