Our analysis suggests that Algorand price could surge by more than 100% if it reclaims a key level. In the past few weeks, cryptocurrencies have had a decent price rally. However, the prices seem to be correcting as Bitcoin failed to break $24,000. AlGO price is also corrected along with other altcoins.
Data from DeFi Llama shows that the TVL of Algorand has increased by more than 150% since the start of 2023. The total locked value of the network, which stood at $73 million, has surged above $187 million. One reason behind this TVL increase is the corresponding increase in Algorand price. Since ALGO is one of the most staked assets on the blockchain, so an increase in its price also increased TVL.
According to Algorand news today, the project has announced a Developer Greenhouse Bootcamp. The upcoming Bootcamp series would teach the developers how to build a dapp in 4 days. The event would likely act as a catalyst for the development of the Algorand ecosystem.
Algorand Daily Chart
On daily chart, Algorand crypto has recently faced rejection from $0.28 level. This level has become a strong resistance since the price broke below it in November 2022. The same region was previously acting as strong support. The presence of a 200-day moving average in the same region makes it even more significant.
The 200-day MA often acts as a line in the sand for the prices of most cryptocurrencies. Therefore, reclaiming this level would make Algorand price prediction extremely bullish. If the price flips the $0.28 resistance into support, I expect the price to retest the $0.45 level soon. This would be an 80% price increase from the current price.
However, if the price breaks below $0.20, things could turn pretty ugly for the bulls. In such an event, ALGO price could retest the December 2022 lows of $0.16. Another reason affecting the price is the Bitcoin price action. For any further upside in altcoin prices, Bitcoin price would need to gain strength above the $24,000 level.