Algorand’s price has skyrocketed 19% in the past 24 hours, making it the strongest gainer on the market. This double-digit price rally pushed the altcoin’s price to a two-year high of $0.34.
With increasingly strong trading activity, the price of the ALGO Token could attempt to surpass the $1 mark for the first time since 2022. This analysis explores why that could be possible.
Algorand Open Interest Record Record
The increase in open interest has been accompanied by a double-digit price increase for ALGO. This level has increased 28% in the past 24 hours and currently reaches a record level of 81 million USD.
Open interest measures the total number of outstanding contracts in the derivatives market for an asset and shows the level of trader participation. When it spikes during a bull run, it hints at market confidence and increased participation. This suggests that the rally is supported by strong demand and signals sustained price growth.
Furthermore, ALGO’s Moving Average Convergence Divergence (MACD) indicator observed on the daily chart confirms this optimistic view. At press time, the altcoin’s MACD line (blue) is above its signal line.
This indicator measures the price trend and momentum of an asset and identifies potential reversal points. As in the case of ALGO, when the MACD line is above the signal line, the asset price is experiencing upward momentum, signaling a buying opportunity. This crossover indicates that short-term returns are outperforming long-term trends, reflecting positive market sentiment.
ALGO Price Review: 1 USD Could Be Within Reach
Currently, the price is 0.34 USD, ALGO is holding firmly above the key support level at 0.30 USD. If this level consolidates as solid support, it could push the altcoin to $0.47. A break above this resistance could push it above the $0.50 mark and put the $1 target in sight.
However, a change in market sentiment could invalidate this optimistic outlook. Increased selling pressure could weaken the ALGO token price, pushing it below support at $0.30 and potentially towards $0.08.