Algorand Surges 57% in Week as User Activity and Stablecoin Supply Jump

Algorand (ALGO) has experienced a significant rally, surging over 57% in the past week before reaching a daily high of $0.29 on Monday. This marks its highest level since March 4. At the time of reporting, ALGO was trading slightly lower at $0.27, still maintaining an 80% gain from its year-to-date low observed earlier in April.

The surge in ALGO's price can be attributed to growing user activity on the Algorand network. According to third-party data, the number of transactions on Algorand increased by 30% in the last seven days, reaching 5.8 million. Additionally, the supply of stablecoins on the network saw a sharp increase, jumping by 94.23% to $134 million, with 98.3% of this supply being in USD Coin (USDC). This indicates increased capital flow and utility across the Algorand ecosystem.

The market for real-world asset tokenization on the Algorand network has also gained traction in recent months. Much of this growth is concentrated on Lofty, a tokenized real estate marketplace that has now surpassed $89 million in Total Value Locked (TVL).

With the momentum building, one analyst argues that ALGO’s uptrend may have more room to run, with a further 55% upside on the table. In a July 15 post, crypto analyst Ali Martinez noted that ALGO appears to be trading within a multi-month parallel channel. A decisive breakout from this formation could mark the beginning of a larger bullish wave, potentially paving the way for further price appreciation in the weeks ahead. According to Martinez, a breakout from the pattern will be confirmed if the ALGO price retests the breakout zone around $0.258. The analyst has set loftier price targets as high as $0.42, which stands 55% above the current price level at the time of writing.

From a technical perspective, ALGO has also formed a bullish double-bottom pattern on the daily chart, with a confirmed breakout above the neckline at $0.2604. The price has also moved decisively above the 50-day and 100-day Exponential Moving Averages, further validating the trend reversal. Simultaneously, momentum indicators like the Relative Strength Index and the MACD were all pointed upwards at the time of reporting.

If ALGO breaks through the immediate resistance at $0.32, the next target lies at the 61.8% Fibonacci retracement level of $0.3642. This indicates that there is potential for further price appreciation in the near future, as the market continues to recognize the growing utility and adoption of the Algorand network.