Algorand’s price moved sideways this week, mirroring the performance of most altcoins following Donald Trump’s inauguration.
Algorand (ALGO), a top layer-2 network, was trading at $0.4165, about 16% below its highest level last week.
The coin has several encouraging fundamentals that could push it higher in the coming days. According to Nansen, the number of active addresses on the network rose by 56% over the last seven days to 892,786, giving it the third-highest weekly growth rate after Arbitrum and Blast.
Another on-chain metric shows that Algorand’s transactions increased by 6.9% to over 11.4 million, while its weekly fees rose by 20% to nearly $15,000.
These numbers indicate strong growth for the network, a week after launching a key upgrade. The Algorand 4.01 upgrade introduced the ability for consensus participants to opt-in to incentives and added a feature allowing developers to build zero-knowledge-proof applications on the network.
More data shows that Algorand’s total value locked in the decentralized finance industry is recovering. It climbed to $155 million, up from its monthly low of $126 million. Most of this growth was driven by Folks Finance, which has over $260 million in assets.
Recently, Eni, a leading Italian energy company, adopted Algorand’s technology to launch a solar power tokenization project.
Algorand price analysis
The weekly chart shows that Algorand’s price has been consolidating since December. This sideways movement followed a jump from $0.1085 in November to a high of $0.6127 in December.
Algorand has formed a symmetrical triangle pattern, which is part of a bullish pennant. The two lines of the triangle are nearing their confluence point, which could lead to a strong breakout in the coming weeks.
A bullish breakout could push the price to the next key target at $0.6127, its November high, representing a potential 50% gain from current levels. This price also aligns with the strong pivot reverse of the Murrey Math Lines tool.
Conversely, a drop below the key support at $0.3290 would invalidate the bullish outlook and suggest further downside toward the support level at $0.1085.
