Algorand [ALGO] saw a rise of more than 14% alongside a corresponding increase in its daily trading volume, indicating a positive trend in the alternative cryptocurrency market as per data from CoinMarketCap.
For a while now, ALGO has been trading in a narrow range between $0.39 and $0.32. Over recent weeks, there have been multiple tests of both the upper and lower boundaries of this range, highlighting a state of balance between buyers and sellers.
This pattern strongly hints at a forthcoming significant movement for ALGO.
If ALGO manages to break above the crucial resistance level at $0.39, there is a strong possibility of a swift 60% price spike, targeting higher price levels similar to what has been observed during previous momentum swings in similar scenarios.
On the flip side, a drop below $0.32 could initiate a bearish trend leading to further price declines. These price movements could significantly impact the market trajectory of ALGO in the near to medium term, presenting strategic opportunities for traders to enter or exit positions.
The current poised state signifies a market on the verge of making a defining move, depending on whether it can sustain above $0.39 or dip below $0.32.
ALGO’s Number of Active Wallets and Their Profitability
Supporting the optimistic outlook is the notable increase in the daily number of active wallets for ALGO, which has risen by 15.93% over the past week after remaining stable since July 2024.
The creation of new wallets surged by more than 58%, coinciding with a 64.16% uptick in zero-balance wallets. This indicates a rise in interest and possibly speculative activities in the market. Sustaining this surge in metrics is essential for ALGO to capitalize on potential gains.
Despite hovering around $0.30, the price of ALGO has shown positive reactions in the last 48 hours, rising to $0.48.
This uptrend signals a probable shift in market sentiment where increased wallet activity might pave the way for further price appreciation.
Diving deeper into the profitability of ALGO’s active wallets, data reveals that 80.79% of wallets are currently “in profit,” with investments now valued higher than their purchase price, compared to 9.47% “out of profit.”
The remaining 9.74% are at a breakeven point. At present, the price of ALGO has climbed from $0.34 to $0.395902 in the last two days, confirming this positive trajectory.
Such a high percentage of profitable wallets often indicates a strong base of holders capable of withstanding sell-offs and maintaining price levels. This further bolsters the likelihood of ALGO breaking out and experiencing a surge of over 60%.
However, there might be instances of profit-taking if ALGO continues its upward trajectory, potentially leading to short-term volatility. Nonetheless, the upward trend is expected to persist if buyer interest remains strong.