Algorand’s Price Rallies as Open Interest Hits Record $81 Million

Algorand’s price has surged 19% over the past 24 hours, making it the market’s top gainer. The double-digit price rally has pushed the altcoin’s price to a two-year high of $0.34.

With strengthening trading activity, the $ALGO token price may attempt to rally above $1 for the first time since 2022. This analysis delves into why that is possible.

Algorand Open Interest Hits All-Time High

A rise in open interest has accompanied $ALGO’s double-digit price hike. This has rallied by 28% over the past 24 hours and is currently at an all-time high of $81 million.

$ALGO Open Interest. Source: Santiment

Open interest measures the total number of outstanding contracts (futures or options) in an asset’s derivatives market and shows the level of trader participation. When it spikes during a price rally, it suggests increased market confidence and participation. It indicates that the rally is backed by strong demand and hints at sustained price growth.

Moreover, $ALGO’s Moving Average Convergence Divergence (MACD) indicator observed on a daily chart confirms this bullish outlook. At press time, the altcoin’s MACD line (blue) rests atop its signal line.

$ALGO MACD. Source: TradingView

This indicator measures an asset’s price trends and momentum and identifies potential reversal points. As in $ALGO’s case, when the MACD line is above the signal line, the asset’s price is experiencing upward momentum, signaling a buying opportunity. This crossover indicates that short-term gains are outpacing long-term trends, reflecting positive market sentiment.

$ALGO Price Prediction: $1 May Be Within Reach

Currently priced at $0.34, $ALGO is holding steady above crucial support at $0.30. If this level strengthens as a solid support floor, it could drive the altcoin toward $0.47. A breakout above this resistance could potentially push it past the $0.50 mark and bring $1 into view.

$ALGO Price Analysis. Source: TradingView

However, a shift in market sentiment could invalidate this bullish outlook. Increased selling pressure could cause the $ALGO token price to shed its recent gains, pushing it below support at $0.30 and potentially sending it toward $0.08.