Algorand price made a strong bullish breakout on Monday morning as the crypto fear and greed index jumped to its highest point in months. It soared to a high of $0.266, its highest point since February 2023. It has been in a strong rally, soaring by over 200% from its lowest level in 2023 and giving it a market cap of over $2 billion.
ALGO soars despite ecosystem woes
Algorand price has jumped sharply in the past few days even as its ecosystem has remained under pressure in the past few months.
A good example of these woes is in the Decentralized Finance (DeFi) industry. According to DeFi Llama, Algorand’s Total Value Locked (TVL) has jumped to over $242 million. It has risen by over 50% in the past 30 days.
The biggest players in its DeFi ecosystem are the likes of Folks Finance, Lofty, Tinyman, and Pact. All these platforms have over $18 million in assets, which is a good thing. However, in $ALGO terms, Algorand’s ecosystem has barely moved this year.
Stablecoins are an important part of any blockchain since they are the main currencies used in their ecosystems. Algorand has stablecoins worth over $66.56 million.
Read more: How to buy Algorand.
Algorand has been passed by many newer blockchain networks. For example, Sui has over $635 million in assets while Filecoin EVM has more than $500 million. It has also been beaten by the likes of PulseChain, Base, and Manta.
Further, despite huge investments, Algorand has struggled to gain market share in the Non-Fungible Tokens (NFT) industry. Data by CryptoSlam shows that the network handled over $17k worth of NFTs in the past 24 hours, making it the 16th in the industry. In contrast, Bitcoin and Ethereum handled $32 million and $25 million, respectively.
Therefore, Algorand price is soaring because of the ongoing momentum in the crypto industry that has seen Bitcoin surge to over $64,000. The fear and greed index has jumped to the extreme greed zone of 85.
Algorand price forecast
ALGO price bottomed at $0.086 in 2023 and then started a strong comeback as the crypto winter ended. It has now moved above the key resistance point at $0.2527, its highest swing on December 22nd. By rising above this price, the coin has invalidated the double-top pattern that was forming.
Algorand price has moved above the 50-day and 25-day Exponential Moving Averages (EMA). Also, the MACD indicator has jumped above the neutral point and is at its highest point since December. The Relative Strength Index (RSI) has moved to the extreme overbought point.
Therefore, the outlook for the Algorand price is extremely bullish, with the next point to watch being at $0.2995, its highest point in February. This price target is about 18% above the current level.
