Algorand is one of the fastest growing crypto in terms of gains. According to CoinGecko, the token has appreciated by 30% in the last two weeks. With the broader crypto market rallying as Bitcoin breaks its crucial $21,000 resistance, ALGO is set to gain more in the next few days.ย
The Total Value Locked department is where the ecosystem gained the most. According to DeFiLlama, Algorandโs TVL yesterday hit $177 million in value. This uptick in TVL is a bullish indicator that the ecosystem still has the momentum to reach new milestones.ย
However, the token might be on shaky ground as the bears test its current support at $0.2275.ย
Image: Forkast
Algorand Developments On-Chain
Algorandโs G6 governance commitment period ended yesterday, January 16. According to Algorand blockchain explorer, AlgoExplorer, more than 4.1 billion ALGO is staked by over 31,763 governors.ย
Image: DeFiLlama
The ecosystem would pay back the governors with an annual return rate of 6.52%. This way of governance makes the Algorand ecosystem stay true to the tenets of decentralized finance. To add to this bullishness, the ecosystem also processed its 1 billionth transaction.ย
With the ecosystem able to handle more than 2,881 swaps on-chain, Algorand is expected to continue growing in popularity.
Did you know Algorand can handle over 10x the number of AMM swaps per second relative to #solana #Avalanche #polygon #bsc #celo #ethereum? $sol $matic $algo $bsc $eth ๐ pic.twitter.com/7hBmduanfM
โ Axetrax (@Axetrax22) January 14, 2023
Can ALGO Continue Its Climb?ย
The token is currently trading at $0.2329, a nearly 1% decrease from yesterdayโs $0.2341 price. The rejection at $0.2418 would delay ALGOโs recovery. With the tokenโs support at $0.2365 broken, ALGO investors should be able to buy the current dip in price as analysts are still bullish with the tokenโs price movement.ย
With improving macro trends, investors and traders are more likely to enter riskier assets like cryptocurrencies. Not to mention that Bitcoin, the face of the crypto market, has broken through crucial resistance at $21k. With ALGOโs high correlation to BTC, ALGO can ride Bitcoinโs rally to reach higher highs.ย
Investors and traders should watch the current market situation of ALGO as the tokenโs current price position as the ecosystem has been having trouble maintaining a social presence.ย
ALGO total market cap at $1.6 billion on the daily chart | Chart: TradingView.com
ALGO holders should also watch Bitcoinโs price rise in the next few days or weeks. The $21k resistance break wiped out the lost ground following the collapse of FTX. If BTC continues its bullish recovery in the next few weeks or days, ALGO can ride the upward wave.ย
But with the token facing a slight correction, this bullish break might be delayed as the bears retest the current support at $0.2275. If the bears win the struggle, the tokenโs recovery will inevitably be delayed.
Featured image from ThoughtCo
