🌎 Algorand Price Nears Breakout Amid Strong Fundamentals

Algorand Price Analysis: Potential Breakout Amid Strong Fundamentals

Algorand’s price has been trading sideways this week, mirroring the performance of most altcoins following recent market events. Currently, Algorand is trading at $0.4165, about 16% below its highest level last week.

Encouraging Fundamentals

The coin has several encouraging fundamentals that could push it higher in the coming days. The number of active addresses on the network rose by 56% over the last seven days to 892,786, giving it the third-highest weekly growth rate. This growth is a positive indicator for the network, especially after the recent launch of the Algorand 4.01 upgrade.

Another on-chain metric shows that Algorand’s transactions increased by 6.9% to over 11.4 million, while its weekly fees rose by 20% to nearly $15,000. These numbers indicate strong growth for the network, which could lead to increased adoption and higher prices.

Key Upgrade and Adoption

The Algorand 4.01 upgrade introduced the ability for consensus participants to opt-in to incentives and added a feature allowing developers to build zero-knowledge-proof applications on the network. This upgrade has the potential to drive further growth and adoption of the Algorand network.

Recently, Eni, a leading Italian energy company, adopted Algorand’s technology to launch a solar power tokenization project. This adoption is a significant milestone for the network, demonstrating its potential for real-world use cases.

Price Analysis

The weekly chart shows that Algorand’s price has been consolidating since December. This sideways movement followed a jump from $0.1085 in November to a high of $0.6127 in December. Algorand has formed a symmetrical triangle pattern, which is part of a bullish pennant.

A bullish breakout could push the price to the next key target at $0.6127, its November high, representing a potential 50% gain from current levels. This price also aligns with the strong pivot reverse of the Murrey Math Lines tool.

Conversely, a drop below the key support at $0.3290 would invalidate the bullish outlook and suggest further downside toward the support level at $0.1085.