The Algorand token shows signs of recovery, having increased over 58% since June lows. This article examines the factors contributing to this growth and the current market status.
Algorand Market: Recovery and Key Factors
After a decline in June, the price of the Algorand token, known as ALGO, has risen by more than 58%, reaching its highest point since May 23. This recovery is linked to a classic double-bottom pattern on the chart and increased network activity.
Growth Metrics of Algorand's Network Activity
According to data from Nansen, the number of transactions on the Algorand network increased by 30% in the last week, reaching 5.8 million. The number of active addresses rose by 22% to 78,766, and user fees increased by 25% to $3.6k. Additionally, the stablecoin supply surged by 77%, totaling $120 million.
Technical Analysis of Algorand's Price
On the daily chart, the ALGO price dropped to $0.1447 in June, forming a double bottom with a neckline at $0.2580. The token has moved above the 78.6% Fibonacci retracement level and surpassed the 50-day and 100-day exponential moving averages, indicating a potential continuation of the upward trend.
Despite the current growth, Algorand's price remains significantly below its all-time high and the market faces various challenges, including the loss of partnership with FIFA and the shutdown of certain DeFi protocols.
