ALGO approaches key resistance as wallet growth continues

  • ALGO token has shed 36% of its value since the start of the year.
  • A price breakout above the 200-day EMA sets the stage for traders to take long positions.

Algorand [ALGO] is back in the spotlight as its price recovery brings a crucial resistance zone around $0.15 into view. The mildly renewed strength in the midweek market action in the form of consecutive daily green candles over the past 7 days follows a period of price weakness in the last week of August.

ALGO wallets show accelerated growth amid price struggles

Despite the repressed market action, Algorand has maintained an almost steady increase in number of wallets this year.

ALGO addresses with a balance have grown by 990K this year per data from IntoTheBlock. The network has especially seen accelerated growth in the last 7 days, with the total addresses with a balance jumping from 21.26 million on 17th September to 21.51 million at the time of writing.

Source: IntoTheBlock

This growing adoption of ALGO suggests rising interest in the blockchain’s ecosystem despite an overwhelming majority of token holders being at a loss. IntoTheBlock’s data shows only 1.87 million addresses are in profit, representing 9.01% of holders.

ALGO technical outlook

Algorand (ALGO) was trading at $0.14 at press time, facing downward pressure below the 200-day exponential moving average (EMA).

From a technical analysis standpoint, ALGO/USD is approaching a critical resistance zone between $0.149 and $0.152, which coincides with the 200-EMA. This range has proven to be a significant hurdle in the last three months after ALGO price slipped below the moving average on 7th June.

Source: TradingView

For ALGO/USD to confirm bullish momentum, the pair would ideally need to break above this trendline. The pair unsuccessfully challenged the zone at the start of July before briefly overcoming it between 14th July and 22nd July.

In the most recent attempt, ALGO’s bullish momentum was thwarted at the height on 26th August.

The zone also represents a barrier that traders are closely monitoring as a successful breach above it would put almost 140K addresses in profit.

These addresses, currently underwater, hold a cumulative volume of 743.62 million ALGO per IntoTheBlock data. Clearing this zone would provide much-needed relief for ALGO bulls, potentially paving the way for further gains above $0.160.

Improved stablecoin market capital

Algorand tracked significant stablecoin market cap growth in August, per the latest Algo insights report. The total stablecoins market capital on the chain, denominated in USD, rose from 85.53 million to 109.90 million, translating to a 28.5% bulge.

Total USDC transactions also increased from 557K to 690K in the same period.

This is notable given that Binance announced the addition of cross and margin USDC pairs for ALGO on 30th August. Nearly all of Algorand’s stablecoin market capital has shifted into USDC in light of Tether discontinuing support for its USD₮ on the blockchain.


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Tether’s transparency website shows $119.2 billion of USDT currently circulating across several chains, with the vast majority of it on Ethereum and Tron.

The net circulation of USDT in Algorand is $2 million. The stablecoin issuer said it will freeze all remaining USD₮ on Algorand by September 2025.

Next: Notcoin tops the charts, eyes 25% gains this week

Source: https://ambcrypto.com/algo-approaches-key-resistance-as-wallet-growth-continues/