Algorand (ALGO) price surged more than 11% on August 8 as the broader crypto market witnessed a spike in upside pressure.
CoinGecko data shows ALGO currently trades around $0.12 on major crypto exchanges, about 7% up in the past 24 hours.
ALGO signals potential recovery
As Bitcoin, the flagship cryptocurrency, rose to above $60,000, Algorand’s ALGO token broke higher. The double-digit gains seen on Thursday reflected the gains that top altcoins recorded as XRP exploded.
For ALGO holders who have seen the cryptocurrency slump to lows of $0.094 earlier in the week, the spike for BTC could prove an inflection point.
In this case, while the altcoin remains in red over the week and last month, the retest of prices above $0.10 and the move to near $0.13 suggests further strengthening across the crypto market could help Algorand’s bullish quest.
What’s bullish for Algorand’s price?
Amid this likely boost for ALGO price is the Algorand ecosystem’s continued traction as a top layer-1 blockchain for Web3.
Notably, the network has seen a key milestone with the total on-chain transactions surpassing 2 billion. The Algorand Foundation shared the milestone details via X on Aug. 8, which showed that on-chain transactions exceeded 240 million in June.
The Algorand ecosystem is also home to over 1,000 decentralized applications, most of them real-world use cases.
Notable projects include the digital collectables platform by FIFA, tokenized airline tickets by travel and fractional real estate marketplace Lofty.
Quantoz is a tokenization and digital assets platform behind the MiCA-compliant digital euro token EURD.
There’s also been a landmark first Mastercard payment via an Algorand funding source.
Analysts say that these real-world uses is an indicator that Algorand’s traction in the RWA market is rising and that beats current price performance. Algorand’s “tech is fit-for-purpose,” market analyst Eldar recently noted in an X post.
The combination of strong fundamentals and the overall long-term sentiment for crypto suggests ALGO price could yet return to levels seen in 2019 when it traded above $3.50.
Short term outlook for ALGO price
While long-term investors see potential for ALGO price, the short-term outlook suggests bulls might struggle.
Data from IntoTheBlock also shows most ALGO addresses are at a loss, with over 90% of addresses riding the pain for several months now. What this suggests is that some investors may be eyeing profit deals as prices rise.
Of the addresses that acquired ALGO between $0.10 and $0.14, the biggest supply wall may lie around $0.134 to $0.14. A total of 415k addresses acquired more than 354 million ALGO at the average price of $0.138.
If ALGO price bounces off this level, it could bounce off $0.15 as bulls target year-to-date highs around $0.31.
Source: TradingView
Algorand’s retreat after breaking above a key descending trendline in July allowed sellers to push prices to recent lows.
That happened as the overall market crashed on multiple negative triggers, including recession fears and rising geopolitical tensions.
If this sentiment takes control, ALGO could dip below $0.10.
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