Algorand (ALGO) Price Eyes 60% Upside as On-Chain Data Reveals Momentum

Algorand appears set for potential price movement as per recent technical indicators and on-chain metrics. Moreover, the crypto asset has maintained a relatively stable position within a critical price range.

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Algorand (ALGO) price has remained within a critical price range, setting the stage for a potential breakout. Top crypto analyst Ali has identified this juncture and anticipates a possible 60% price surge for ALGO.

According to Ali, a decisive close outside the $0.39-$0.32 range will determine the direction of the trend.

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ALGO is poised for a potential 60% breakout! A decisive close outside the $0.39–$0.32 range will set the direction of the trend. pic.twitter.com/ZmSQ7gZGdK

— Ali (@ali_crypter) January 20, 2023

Algorand market sentiment and holder dynamics

Data from IntoTheBlock shows that the market dynamics in Algorand are revealing a range of sentiments among the token’s holders.

At present, 50% of ALGO holders are experiencing unrealized losses, while 12% are at breakeven and 38% are in profit. This distribution highlights possible opportunities for new investors to enter at favorable prices while also indicating challenges for existing holders.

The concentration of ALGO among large holders is evident, with 68% of the token’s supply being held by these entities. This high concentration makes it essential for traders to keep an eye on large transactions.

Recent whale activity, marked by transactions exceeding $100,000, has amounted to $415.19 million in total over the past week. This activity indicates growing institutional interest in the asset.

Correlation with Bitcoin and on-chain signals

ALGO shows a moderate dependency on the broader market leader, with a price correlation of 0.49 to Bitcoin. This suggests that while Bitcoin trends influence its movements, Algorand also thrives on ecosystem-specific factors.

However, IntoTheBlock’s on-chain signals present a bearish outlook for the token, with minimal growth in user adoption and decreased activity among large transactions.

The Net Network Growth metric shows a marginal increase of 0.41%, indicating limited participation by new users. Meanwhile, a 1.77% decrease in large transactions points to subdued institutional activity. These bearish signals, combined with reduced whale concentration, highlight the token’s current struggle to gain upward momentum.

Address growth highlights adoption trends

Despite the challenges in the market, Algorand’s total address growth tells a tale of resilience and adoption. The total number of addresses holding ALGO has seen a steady climb, reaching 22.77 million by January 2025. This metric signals increasing interest in the token, even as the market experiences volatility.

Notably, the steady growth in addresses amid fluctuating prices indicates confidence in ALGO’s long-term potential. As prices show signs of recovery, rising participation suggests that users are accumulating or holding for the future.

Recent price performance

As of today, Algorand is trading at $0.3995, showing a 13.39% increase in the last 24 hours and a 9.03% rise over the past week, according to CoinGecko.

These gains could be signaling the start of a bullish phase, aligning with increasing high-value transactions and adoption metrics. With strong fundamentals and whale activity in focus, all eyes remain on Algorand’s price breakout prospects.

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