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Algorand (ALGO) price has staged a strong recovery in the past few weeks as the altcoin season intensifies. The token has risen in the past three straight days and is now hovering at its highest point since April. It has surged by more than 144% from its lowest point this year.
Why is ALGO token rising?
Algorand price has jumped in the past few weeks even as concerns about the network remained. These concerns intensified in July when AlgoFi, which was its biggest DeFi platform shut down.
Before its collapse, AlgoFi held over 55% of all assets in its ecosystem. The developers cited the prolonged crypto winter and the lack of action on the platform. Since then, Algorand’s ecosystem has been quite tiny.
Data compiled by DeFi Llama shows that Algorand’s total value locked (TVL) stands at just $86 million. This makes it smaller than newer platforms like Base, Arbitrum, and Optimism, which have become popular among investors. The biggest dApps in Algorand’s ecosystem are Folks Finance, Lofty, Pact, and Tinyman.
Additional open-source data shows that Algorand has a small market share in the Non-Fungible Token (NFT) industry. According to CryptoSlam, Algorand’s NFT sales in the past 24 hours stood at over $9,086, making it the 17th biggest platform. In comparison, Solana handled $16 million while Bitcoin processed $14 million.
Therefore, Algorand price is soaring because of the ongoing altcoin season, which has been triggered by the strong Bitcoin performance. This also explains why other altcoins like Polygon MATIC and Solana have jumped.
The theory is that some of the tokens that did well in 2021 should outperform when Bitcoin rises. Moreover, many traders believe that buying Algorand is a better option than investing in Bitcoin, which is trading at $44,000.
Algorand price forecast
ALGO chart by TradingView
Turning to the daily chart, we see that the ALGO price has surged in the past few weeks. Most recently, the token has flipped the important resistance point at $0.1586, the lowest swing in December 2022. It has also jumped above the 23.6% Fibonacci Retracement level while oscillators like the Relative Strength Index (RSI) and the MACD have pointed upwards.
Most importantly, the token is about to form a golden cross, which happens when the 200-day and 50-day moving averages cross each other. Therefore, the outlook for the ALGO price is bullish, with the next point to watch being at $0.27, which is the 50% retracement point.
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