ALGO price hits 5-month high, analyst sees room for another 55% rally

Algorand has rallied over 57% in the last 7 days before hitting a daily high of $0.29 on Monday, its highest level since March 4.

According to data from crypto.news, Algorand (ALGO) price hit a 5-month high of $0.289 on July 14. At press time it trading slightly lower at $0.27, still holding gains of 80% from its year-to-date low observed earlier in April.

Algorand rallied after third-party data emerged showing that Algorand’s network was gaining traction among users. According to Nansen, the number of transactions on Algorand jumped by 30% in the last seven days to 5.8 million. 

Similarly, stablecoin supply on the network also saw a sharp increase, jumping by 94.23% to $134 million, 98.3% of which was in USD Coin (USDC), indicating increased capital flow and utility across its ecosystem.

The market for Real-world asset tokenization on the Algorand network has also gained traction in recent months. Much of this growth is concentrated on Lofty, a tokenized real estate marketplace that has now surpassed $89 million in TVL. 

With momentum building, one analyst argues that ALGO’s uptrend may have more room to run, with a further 55% upside on the table.

In a July 15 X post, crypto analyst Ali Martinez noted that ALGO appears to be trading within a multi-month parallel channel. A decisive breakout from this formation could mark the beginning of a larger bullish wave, potentially paving the way for further price appreciation in the weeks ahead.

According to Martinez, a breakout from the pattern will be confirmed if the ALGO price retests the breakout zone around $0.258. The analyst has set loftier price targets as high as $0.42, which stands 55% above the current price level at the time of writing.

From a technical perspective, ALGO has also formed a bullish double-bottom pattern on the daily chart, with a confirmed breakout above the neckline at $0.2604. The price has also moved decisively above the 50-day and 100-day Exponential Moving Averages, further validating the trend reversal.

ALGO price, 50-day and 100-day SMA chart — July 15 | Source: crypto.news

Simultaneously, momentum indicators like the Relative Strength Index and the MACD were all pointed upwards at press time.

If ALGO breaks through the immediate resistance at $0.32, the next target lies at the 61.8% Fibonacci retracement level of $0.3642.