Algorand (ALGO) Surges to 5-Month High: Analyst Predicts Further 55% Upside Potential

Algorand's Price Climbs to Highest Level Since March Amid Rising Network Activity

Algorand (ALGO), a prominent player in the blockchain ecosystem, has seen its price soar over 57% in the last week, reaching a daily high of $0.29 on Monday — its highest point since early March. As of now, ALGO is trading near $0.27, holding on to impressive gains of roughly 80% from its yearly low recorded in April.

Network Adoption and Stablecoin Inflows Fuel ALGO's Bullish Momentum

The recent ALGO price rally is closely tied to a surge in on-chain activity. According to data from Nansen, Algorand processed 5.8 million transactions over the past seven days, reflecting a sharp 30% increase in network usage. This uptick in activity underlines growing user engagement and trust in the Algorand blockchain.

Additionally, Algorand has experienced a spike in stablecoin inflows, indicating increased capital entering its decentralized finance (DeFi) ecosystem. Stablecoin supply jumped by 94.23% to a total of $134 million, with USD Coin (USDC) making up 98.3% of that sum. This surge highlights ALGO's expanding role in real-world transactions and decentralized applications.

Tokenized Real-World Assets Drive Algorand TVL Higher

Algorand’s ecosystem is gaining further strength from its growing real-world asset (RWA) tokenization sector. The tokenized real estate platform Lofty has been a significant growth driver, now boasting over $89 million in total value locked (TVL) on the Algorand network.

Analysts See More Room for ALGO Price Growth

With momentum building, some market watchers believe ALGO's bullish run could continue. Crypto analyst Ali Martinez noted in a recent social media post that ALGO appears to be consolidating in a multi-month parallel channel. According to Martinez, a confirmed breakout and retest of the breakout zone near $0.258 could pave the way for a powerful upward move, with price targets as high as $0.42 — representing a potential 55% rally from current levels.

From a technical standpoint, ALGO has formed a bullish double-bottom pattern with a breakout above the $0.2604 neckline and has surpassed both the 50-day and 100-day Exponential Moving Averages. Momentum indicators such as the Relative Strength Index (RSI) and MACD are trending upward, reinforcing the current upward trend.

Key Resistance and Price Targets

The immediate resistance for ALGO stands at $0.32. Should the price break this level, the next major target is the 61.8% Fibonacci retracement at $0.3642. As adoption, utility, and technical strength all converge, ALGO is quickly solidifying its position as one of the leading altcoins to watch in the cryptocurrency market.