Algorand ALGO Tests $0.26 Support Amid 40% Upside Potential and Strong Q2 Network Growth

Algorand (ALGO) is currently testing a key support level near $0.26 following the confirmation of a bullish double bottom pattern. This technical formation, characterized by two lows at $0.15 and $0.16, has established the neckline at $0.26 as a critical support zone. Price consolidation above the 20-day EMA suggests a healthy momentum reset without bearish pressure, positioning the asset for a potential upward move. The Relative Strength Index (RSI) has retreated from an overbought peak to a neutral level near 53, reinforcing the idea that the pullback is part of a normal consolidation phase rather than a bearish reversal [1].

Fundamental support for ALGO’s price outlook comes from the Algorand Foundation’s Q2 2025 Transparency Report, which highlights record network activity. The report notes over 3 billion lifetime transactions and a 7.5% quarterly increase in transaction volume. Staking metrics also show significant growth, with consensus staking up 28.7% and community staking rising 51%. Additionally, tokenization efforts—such as the Midas mTBILL ETF certificate—have driven a 12.7% increase in Real World Asset (RWA) total value locked (TVL). These fundamentals reflect growing network utility and investor confidence, which could attract more liquidity and participants [1].

From a price action perspective, ALGO’s current position suggests the potential for a 40% upside if the $0.26 support holds. The measured move target from the double bottom pattern points to $0.37, with immediate resistance at $0.34. A breakdown below the $0.26 level, however, could invalidate the bullish pattern and lead to a pullback toward $0.23 or $0.20. Analysts emphasize the importance of monitoring this support level as a key inflection point for the next phase of price movement [1].

While the 40% upside forecast is based on technical analysis and not confirmed financial outcomes, the confluence of strong fundamentals and favorable technical indicators makes ALGO a compelling asset to watch. The expansion of use cases, including tokenized assets, further diversifies the platform’s value proposition and may help sustain the uptrend. Investors are advised to balance both technical and fundamental factors when evaluating the potential move [1].

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[1] Algorand (ALGO) Price Tests Key Support Amid Potential 40% Upside Following Bullish Pattern and Strong Q2 Report (https://en.coinotag.com/algorand-algo-price-tests-key-support-amid-potential-40-upside-following-bullish-pattern-and-strong-q2-report/)