Algorand appears set for potential price movement as per recent technical indicators and on-chain metrics. Moreover, the crypto asset has maintained a relatively stable position within a critical price range. Growing institutional interest and whale activity have added to the market excitement.
Top crypto analyst Ali has highlighted ALGO’s current position at a critical juncture. According to Ali, ALGO stands ready for a possible 60% price surge. The analyst emphasized that a definitive close outside the $0.39-$0.32 range would determine the trend’s direction.
Algorand Market Sentiment and Holder Dynamics
Data from IntoTheBlock indicates that the market dynamics in Algorand show a range of sentiments among holders.
50% of holders experience unrealized losses, 12% are at breakeven, and 38% of holders are in profit. This distribution highlights possible opportunities for new investors to enter at favorable prices while signaling challenges for existing holders.
The data further shows that 68% of ALGO’s supply is concentrated among large holders. This high concentration emphasizes the token’s reliance on whale activity, making it crucial for traders to monitor significant transactions.
Recent whale activity, marked by transactions exceeding $100,000 totaling $415.19 million in the past week, indicates growing institutional interest in the asset.
Correlation with Bitcoin and On-Chain Signals
With a price correlation of 0.49 to Bitcoin, ALGO shows moderate dependency on the broader market leader. This suggests that while Bitcoin trends influence its movements,
Algorand also thrives on ecosystem-specific factors. However, IntoTheBlock’s on-chain signals paint a bearish picture, with minimal growth in user adoption and decreased whale activity.
The Net Network Growth metric shows a marginal increase of 0.41%, reflecting limited new user participation. Meanwhile, a 1.77% decrease in large transactions points to subdued institutional activity. These bearish signals, combined with reduced whale concentration, underline the token’s current struggle to gain upward momentum.
Address Growth Highlights Adoption Trends
Despite market challenges, Algorand’s total address growth tells a story of resilience and adoption. The total number of addresses holding ALGO has climbed steadily, reaching 22.77 million by January 2025. This metric signals increasing interest in the token, even amid market volatility.
Notably, steady address growth amid fluctuating prices reflects confidence in Algorand’s long-term potential. As prices show signs of recovery, rising participation suggests that users are accumulating or holding for the future.
Recent Price Performance
As of today, Algorand is trading at $0.3995, marking a 13.39% increase over the last 24 hours. This follows a 9.03% rise over the past week, according to CoinGecko.
These gains could signal the start of a bullish phase, aligning with increasing high-value transactions and adoption metrics. With strong fundamentals and whale activity in focus, all eyes remain on Algorand’s price breakout prospects.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
Source link
