Price Movement Overview
Algorand’s price has displayed a sideways trend this week, reflecting the performance of various altcoins in the wake of Donald Trump’s inauguration. Currently, Algorand (ALGO) is valued at $0.4165, approximately 16% below its peak from the previous week.
Encouraging Fundamentals
The cryptocurrency is supported by several promising fundamentals that could drive its price higher in the upcoming days. As reported by Nansen, the network saw a 56% increase in active addresses over the past week, reaching a total of 892,786. This surge places Algorand third in weekly growth, following Arbitrum and Blast.
On-Chain Metrics
Additional on-chain data reveals that Algorand’s transaction volume grew by 6.9%, surpassing 11.4 million transactions, while weekly fees experienced a 20% increase, nearing $15,000. Such figures point to robust growth for the network, particularly following the recent launch of a significant upgrade.
Recent Upgrades and DeFi Growth
The Algorand 4.01 upgrade rolled out features allowing consensus participants to opt-in for incentives and enabling developers to create zero-knowledge-proof applications on the platform. Furthermore, Algorand’s total value locked (TVL) in the decentralized finance sector is on the rise, climbing to $155 million from a monthly low of $126 million. This growth is largely attributed to Folks Finance, which manages over $260 million in assets.
Corporate Adoption
In a notable development, Eni, a prominent Italian energy firm, has embraced Algorand’s technology to initiate a solar power tokenization project.
Price Chart Analysis
The weekly price chart indicates that Algorand has been consolidating since December, following a significant rise from $0.1085 in November to a peak of $0.6127 in December. Currently, the price has formed a symmetrical triangle pattern, indicative of a bullish pennant.
Potential Breakout
As the two lines of the triangle approach their confluence point, a powerful breakout could be imminent in the coming weeks. A bullish breakout could propel the price towards the next critical target of $0.6127, which represents a potential 50% increase from current levels. This target also aligns with a strong pivot reversal indicated by the Murrey Math Lines tool.
Support Levels
On the other hand, if the price falls below the crucial support level of $0.3290, it would negate the bullish outlook and suggest further declines towards the support level at $0.1085.
“`
