Algorand's ALGO Sees 66% Transaction Volume Surge, Whale Accumulation Rises 5.12%

Algorand's native token, ALGO, has experienced a significant surge in transaction volume, increasing by 66% over the past week. This surge is the highest among all tracked chains, indicating a growing interest and activity within the Algorand network. Concurrently, the volatility of ALGO has decreased to 65.57%, marking a new 30-day low. This combination of rising usage and contracting volatility is a rare occurrence and suggests a period of organic accumulation and growing investor confidence.

The network momentum is building, and technical pressure is tightening as ALGO tests the upper boundary of its multi-month descending channel. Market participants are closely monitoring the situation for a decisive move. The Address Activity data provides a mixed narrative. While zero-balance addresses have surged by 23.29%, new and active addresses have fallen by 23.90% and 9.12%, respectively. This divergence implies that although usage is growing, retail participation remains cautious, which could cap short-term upside unless the price breaks out decisively and attracts fresh attention.

Over the last thirty days, whale wallets have increased their ALGO holdings by 5.12%, while retail and mid-tier investors have reduced their exposure. This accumulation by large holders during a period of compression aligns with historical breakout behavior. Whales often position early, absorbing liquidity while sentiment remains neutral. Their growing share signals rising conviction among informed participants. If this trend continues alongside technical confirmation, it may validate the current accumulation narrative and signal strength behind any potential breakout.

At the time of writing, Algorand was pressing against the upper boundary of a descending channel that has persisted since late 2024. The next key resistance sits at $0.2541, with additional upside targets at $0.3006 and $0.3491. Support holds at $0.1814 and $0.1511. The RSI sat at 50.06, a neutral level that supports further upward movement. A clean breakout above $0.2541 would flip the market structure bullish and shift sentiment decisively, potentially opening room for further gains in the short term.

Spot Netflow data shows equilibrium, with inflows and outflows both recorded at around $1.89 million. This indicates that traders remain balanced and cautious, unwilling to commit in either direction without a clearer signal. Such neutrality is typical during critical technical retests. The current balance may quickly shift if price action breaks resistance or faces a rejection, making this moment pivotal for trend formation.

Binance’s 24-hour liquidation heatmap reveals dense clusters around $0.21, confirming it as a critical resistance zone. These clusters suggest that a move above this level could trigger short liquidations and fuel upward price momentum. On the other hand, failure to break through might result in selling pressure from overleveraged longs. Algorand’s surge in transaction activity, reduced volatility, and rising whale accumulation build a strong bullish case. However, the caution seen in address activity and neutral netflows shows the market is still in wait-and-see mode. All eyes are now on the $0.21–$0.2541 resistance zone. A confirmed breakout could trigger momentum-driven upside and shift ALGO into a new bullish phase after months of consolidation.