Algorand (ALGO) has surged 19% over the past 24 hours, becoming the top-performing cryptocurrency on the market. The double-digit rally has taken the altcoin to a two-year high of $0.34.
With trading activity continuing to increase, ALGO could attempt to break above the $1 mark for the first time since 2022. This analysis will shed light on why this could happen.
Algorand Open Interest Hits All-Time High
ALGO’s double-digit rally has been accompanied by a significant increase in open interest (OI). ALGO’s open interest has increased by 28% over the past 24 hours, reaching a record high of $81 million.
Open interest measures the total number of outstanding contracts (futures or options) in the derivatives market for an asset, reflecting investor participation. When this indicator rises sharply during a bull run, it indicates increased market confidence and participation. This signals that the rally is backed by strong demand and suggests the possibility of sustained price growth.
Furthermore, ALGO’s MACD indicator on the daily chart also reinforces this bullish outlook. At the moment, the MACD line (in blue) is above the signal line and sloping up.
The MACD indicator measures price trends and momentum, and identifies potential reversal points. In the case of ALGO, when the MACD line is above the signal line, the asset’s price is experiencing increasing momentum, signaling a buying opportunity.
ALGO Price Prediction: $1 Within Reach?
Trading at $0.34, ALGO is currently holding above the key support level at $0.30. If this level continues to consolidate as a strong support platform, the altcoin could head towards $0.47. A breakout above this resistance level could push the price above $0.50 and bring the $1 mark into view.
However, a change in market sentiment could invalidate this bullish outlook. If selling pressure increases, ALGO could erase recent gains, fall below the $0.30 support, and even risk falling back to $0.08.
