ALGO Shows Signs of Life: Key Metrics Point to a Potential Breakout Ahead
Algorand (ALGO) is once again exhibiting indications of life. Due to a traditional double-bottom pattern and fresh momentum throughout its network, the token has risen more than 58% from its June lows. Although there are still challenges in the way of a complete recovery, traders are watching for a possible breakout into significant resistance levels as daily transactions, active addresses, and stablecoin activity all record double-digit growth.
Network Activity on Algorand Soars as Stablecoin Supply Hits $120M
When third-party statistics revealed that Algorand‘s network was gaining popularity among users, the price of its token skyrocketed. Nansen claims that there have been 5.8 million transactions on Algorand in the past seven days, a 30% increase. Similarly, the network’s fees increased by 25% to $3.6k, while the number of active addresses increased by 22% to 78,766. Even though they were still far below their counterparts, these figures were very encouraging.
The quantity of stablecoins was another significant signal that rose over the course of the week. Over the past seven days, the stablecoin supply has grown by more than 77%, hitting $120 million. With $118 million, USD Coin was the most popular stablecoin.
Can Algorand Bulls Push Beyond $0.2580?
According to the daily chart, the price of ALGO fell to $0.1447 in June and then created a double-bottom pattern with a neckline at $0.2580. One of the most typical bullish reversal indicators is a double bottom. The token is now above the $0.2168 level, which is the 78.6% Fibonacci Retracement. Additionally, the 50-day and 100-day Exponential Moving Averages have been surpassed.
The MACD indicators and the Relative Strength Index have both been pointing upward. The price of Algorand will therefore probably keep climbing as bulls aim for the crucial resistance level at $0.2580. A rise above that resistance will indicate more gains to the $0.3612 50% retracement mark.
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