Algorand (ALGO) Surges 18% as Institutional Interest and U.S. Policy Involvement Boost Momentum

Algorand (ALGO) has shown signs of renewed strength, with the token holding support at $0.18 and forming a higher low. This technical pattern suggests bullish accumulation, indicating a potential shift in momentum. The price has bounced from the 0.618 Fibonacci level, a key zone often linked to rally setups, further supporting the bullish outlook.

Trading volume has surged as ALGO clears its recent downtrend, with traders eyeing the $0.25 resistance level. The increasing volume signals that institutional players or large wallets may be entering the market, adding to the bullish sentiment. Analysts point to Algorand’s growing involvement in U.S. crypto policy as a potential catalyst for further gains.

According to Michaël van de Poppe, the higher low formation mirrors classic accumulation patterns that precede rallies during favorable market cycles. The retracement reached the 0.618 Fibonacci level, a widely-watched technical zone that often acts as a launchpad for upward movements. If the bullish trend continues, traders are eyeing the 1.618 extension level near $0.47 as a potential upside target.

Market momentum appears to be building, with recent price activity hinting at a breakout. Trader RALVΞRO noted that Algorand had cleared its recent downtrend, gaining strength on increasing volume. He suggested that if the momentum holds, the price could reclaim the $0.25 level soon. This aligns with the broader crypto environment, which has turned more positive following recent geopolitical shifts. As risk appetite returns, tokens like ALGO that have both technical and fundamental appeal may outperform.

Beyond technicals, Algorand’s involvement with the Blockchain Association could support long-term growth. By joining the group, Algorand positions itself within conversations shaping U.S. crypto regulation. This development adds a layer of strategic value that may enhance adoption prospects, especially if regulatory clarity improves. Market watchers suggest that projects aligned with policy initiatives could see stronger institutional interest. For Algorand, this move may increase visibility and influence in a space where compliance is gaining importance.