Algorand's ALGO Token Poised for 300% Rally to $0.60

Algorand's native token, ALGO, is poised for a significant rally, with technical analysis indicating a potential breakout to $0.60. Despite recent short-term price weakness, the cryptocurrency is showing signs of bullish strength, anchored by support levels between $0.10 and $0.15. The falling wedge pattern, which has been in place since November 2024, suggests a strong upward momentum, with key resistance levels at $0.6139.

ALGO's price action has been characterized by periods of consolidation followed by breakouts. The first breakout occurred near $0.15 in December 2024, followed by another around the $0.20 level in April 2025. These movements confirm the classic bullish pattern, with decreasing price volatility and supportive volume patterns. Currently, ALGO is trading near the upper boundary of its historical range, indicating a potential for further gains.

While technical indicators point to a bullish outlook for ALGO, market sentiment is also evolving. Traditional DeFi metrics, such as Total Value Locked (TVL), are losing their predictive relevance. According to a study led by Dr. Matt Brigida, Chief Economist of the Algorand Foundation, TVL-based portfolios failed to generate meaningful excess returns across more than 300 cryptocurrencies. This suggests that TVL may no longer be a reliable performance metric.

In response to these findings, many platforms are shifting their focus toward broader indicators. Metrics such as wallet activity, capital retention, and transaction flow are now being used to offer deeper insights into the performance of cryptocurrencies. Analytics tools like Dune and L2BEAT are adopting wider metrics like Total Value Secured (TVS), while Nansen combines TVL with smart money activity for context. Similarly, Flipside Crypto emphasizes user-driven value creation, reflecting a broader shift in how the performance of cryptocurrencies is evaluated.