Will Algorand Trading Volume Maintain Its Momentum?
Algorand (ALGO) trading volume surged 130% in the past 24 hours, pushing the token price to $0.40. The rally left 38% of ALGO holders with unrealized profits.
While this trend may increase the number of profitable holders, On-chain analysis This indicates that ALGO’s price may suffer setbacks.
Interest in Algorand rises, but stakeholders are giving up
Algorand’s price surged from $0.33 on January 1, 2025 to $0.40 today, marking a strong start to the year. this Rally position algorithm As one of the best performing assets among the top 50 cryptocurrencies.
In addition, Algorand’s trading volume climbed from $170.67 million to $468.6 million during the same period. The increase in trading volume indicates growing interest in cryptocurrencies. The upward trend in volume and price indicates strong bullish momentum, suggesting that the coin’s value may climb further.
Although increased transaction volume has driven Algorand’s recent gainsa drop in volume could indicate weakening momentum. However, key indicators now suggest that ALGO’s price may struggle to sustain gains in the near term.
One indicator consistent with this bias is the net flows of large shareholders. According to IntoTheBlock data, network traffic is a key indicator of network traffic balance Buying and selling by addresses holding 0.1% to 1% of Algorand’s circulating supply has turned negative.
When net flow from large holders is positive, it indicates that most people are accumulating more tokens than they are selling. Conversely, negative readings indicate a distribution, holder uninstall More than they purchased.
This shift suggests that these ALGO holders were selling more than they were buying. If this trend continues, the current price of ALGO at $0.40 may come under significant downward pressure.
ALGO Price Forecast: A possible pullback
From an on-chain perspective, money in/out around price (IOMAP) shows: Argo prices A trade higher is less likely. IOMAP classifies addresses based on currencies that are at their break-even point and addresses outside of other currencies.
Using this data, one can find support and resistance. Typically, the higher the volume or address, the stronger the support or resistance. As of press time, 146,530 addresses hold 48.64 million ALGO, with an average price of $0.40.
But at a price of $0.42, 219,340 addresses held 333 million ALGOs and were out of money. This shows Algorand’s price faces significant headwindswhich may push it back.
If this continues, ALGO may drop back to $0.35. However, if Algorand trading volume increases with massive accumulation, its value could jump to $0.50.
Disclaimer
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