Algorand (ALGO) is showing signs of life again. The token has surged more than 58% from its June lows, fueled by a classic double-bottom pattern and renewed momentum across its network.
As daily transactions, active addresses, and stablecoin activity all notch double-digit gains, traders are eyeing a potential breakout toward key resistance levels—though the road to a full recovery still has obstacles.
ALGO jumped for five consecutive days, reaching its highest level since May 23. It has soared by over 58% from its June lows, and is slowly nearing the double-bottom’s neckline.
Algorand’s token price jumped as third-party data showed that Algorand’s network was gaining traction among users. According to Nansen, the number of transactions on Algorand jumped by 30% in the last seven days to 5.8 million.
Similarly, the number of active addresses rose by 22% to 78,766, while the fees generated in the network soared by 25% to $3.6k. These numbers were highly encouraging, even as they remained substantially below their peers.
Another notable metric that surged during the week was its stablecoin supply, which jumped by over 77% in the last seven days to $120 million. Most of these stablecoins were USD Coin, which has $118 million.
Algorand price also surged as the futures open interest rose to the highest point since February. It jumped to over $110 million, up from $66 million in June.
Still, Algorand’s price remains much lower than its all-time high, while its role in the crypto market has fallen. For example, AlgoFi, a DeFi protocol that held over 55% of its assets shut down in July 2023, and a new large player has not come up.
Similarly, Algorand recently lost a deal from FIFA, the soccer governing body. FIFA will now launch its NFT initiatives using Avalanche, while a recently-launched game, FIFA Rivals, was launched on Polkadot.
Algorand price technical analysis
The daily chart shows that the ALGO price dropped to $0.1447 in June and formed a double-bottom pattern with a neckline at $0.2580. A double bottom is one of the most common bullish reversal signs.
The token has moved above the 78.6% Fibonacci Retracement level at $0.2168. It has also jumped above the 50-day and 100-day Exponential Moving Averages.
The Relative Strength Index and the MACD indicators have all pointed upwards. Therefore, the Algorand price is likely to continue rising as bulls target the key resistance level at $0.2580. A move above that resistance will point to more gains to the 50% retracement level at $0.3612.
