Algorand Processes 1 Million Transactions, Price Drops 0.45%

Algorand [ALGO] recently processed over 1 million transactions in a 24-hour period, with Active Addresses surging by nearly 30%. Despite this significant on-chain activity, the price of ALGO declined by 0.45% in the last 24 hours, and its overall performance over the past week was down by 9.44%. This underperformance in terms of returns has raised questions about what is hindering ALGO's potential rally.

Recent reports indicate a notable surge in Algorand’s on-chain activity, with the network reaching 1 million executed transactions and Active Addresses climbing to 108,000. This increase is attributed to low fees and high usage. On the chart, ALGO formed a triple-bottom line just above a key support level. A breakout above the descending resistance could push the price toward $0.3128—a 47% climb. However, weak momentum suggests that the asset could consolidate further, remaining either at a loss or posting minimal gains.

An analysis of the spot and derivatives markets shows that overall market momentum remains significantly low. In the spot market, traders are selling the asset rather than buying, with $74,000 worth of ALGO sold so far. This selling does not add to ALGO's bullish potential, and the altcoin could continue trading within this range. In derivatives, sentiment leaned bullish, but conviction seemed to waver. Volume jumped 11.79% to $83.10 million, yet Open Interest (OI) dropped 2.72% to $84.27 million. This mismatch between rising volume and falling OI usually signals low confidence. The Long/Short Ratio dipped to 0.9088, showing sellers in control. Top traders on Binance were still long-heavy, with account-level Long/Short Ratios above 2.0. This created a dissonance: whales may be preparing for upside, but retail is still pulling back. If selling pressure continues to mount, ALGO risks remaining in the lower price region until significant buying momentum emerges.