Algorand Breaks Double Bottom as Q2 Fundamentals and RWA TVL Growth Signal 40% Upside Potential

Algorand (ALGO) has entered a critical junetion following a breakout from a well-structured double bottom pattern, currently consolidating above key support levels at $0.26 and the 20-day EMA, which aligns closely at $0.2611. This zone represents a confluence of technical significance, where bulls aim to sustain control and validate the breakout. Price action remains within a healthy consolidation phase, indicating continued buyer interest without signs of bearish pressure. The RSI has cooled from overbought levels near 80 to approximately 53, signaling a balanced momentum reset that supports the broader bullish setup [1].

Should the consolidation hold above the neckline, ALGO could retest its previous high at $0.34 and potentially move toward $0.37 based on the measured move from the double bottom formation. This would represent a 40% increase from current levels. However, a daily close below $0.26 could trigger a shift in short-term sentiment, leading to a decline toward $0.23 or even $0.20. Traders are closely monitoring this level as a decisive filter for the next major move [1].

Fundamental data further reinforces the positive technical outlook. Algorand’s Q2 2025 Transparency Report revealed significant growth in network activity, including over 3 billion lifetime transactions as of May 2025 and a 7.5% quarter-over-quarter increase in transaction volume. Staking activity also saw a notable rise, with consensus staking up 28.7% and community staking increasing by 51%. These figures reflect continued progress toward decentralization and increased network participation [1].

The growth of real-world asset (RWA) total value locked (TVL) on the Algorand network also stands out, with a 12.7% increase in Q2. This was largely driven by initiatives such as Midas’ mTBILL, a tokenized U.S. Treasury ETF certificate, which has enhanced the network’s utility and attracted broader investor interest [1].

Algorand’s current price action and underlying fundamentals suggest a strong foundation for further growth. While the broader crypto market remains subject to volatility, ALGO’s technical consolidation and rising on-chain activity position it as a compelling asset for investors monitoring the $0.26 level as a key pivot point [1].

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[1] Algorand poised for 40% surge based on a bullish pattern and robust Q2 report (https://crypto.news/algorand-poised-for-40-surge-based-on-a-bullish-pattern-and-robust-q2-report/)