Algorand (ALGO) Trading Volume Spikes by 130%, Pushing Price to $0.40

Algorand's (ALGO) trading volume has spiked by 130% in the past 24 hours, pushing the token's price to $0.40. This rebound has brought 38% of ALGO holders into unrealized profits.

Algorand (ALGO) price surged over 20% in the past 24 hours to reach $0.40. This strong upswing brought 38% of ALGO holders into unrealized profits.

While this trend bodes well for the majority of token holders, on-chain analysis now suggests that ALGO’s price may encounter a setback.

ALGO Price Surges 24%, Bringing Majority of Holders into Profits

Algorand price began the year at $0.33 on January 1, 2025. Since then, the token has rallied relentlessly to reach $0.40. This uptick marks a strong start to the year for ALGO.

Among the top 50 cryptocurrencies, ALGO is one of the best performers. Over the past seven days, the token has appreciated by more than 24%.

Furthermore, Algorand’s trading volume surged over the same period. Starting the week with $170.67 million, the volume rose to reach $468.60 million at press time.

This increase in volume suggests rising interest in the cryptocurrency. Together, the upward trend in both volume and price indicates strong bullish momentum, suggesting the token’s value could climb further.

However, key metrics now suggest that ALGO’s price may struggle to sustain its upswing in the short term.

One metric that aligns with this bias is the large holders’ netflow. According to IntoTheBlock data, the netflow, a key metric measuring the balance of buying and selling by addresses holding 0.1% to 1% of Algorand’s circulating supply, has turned negative.

When large holders’ netflow is positive, it indicates that most are accumulating more tokens than they are selling. Conversely, a negative reading signifies distribution, with holders offloading more than they are buying.

This shift indicates these ALGO holders are selling more than buying. If this trend persists, ALGO’s price, currently at $0.40, could face significant downside pressure.

ALGO Price Prediction: Retracement Likely

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) shows that ALGO’s price is less likely to trade higher.

The IOMAP classifies addresses based on those in the money, at the breakeven point, and others out of the money.

Using this data, one can spot support and resistance. Typically, the higher the volume or addresses, the stronger the support or resistance.

At press time, 146,530 addresses hold 48.64 million ALGO in the money, purchased at an average price of $0.40.

But at $0.42, 219,340 addresses hold 333 million ALGO and are out of the money. This indicates that Algorand’s price faces significant resistance, which could push it back.

If this remains the case, ALGO could pull back to $0.35. However, if Algorand trading volume rises with intense accumulation, the value could jump toward $0.50.