The bulls have become pretty active but have shifted their focus on the primitive tokens, which have stood throughout the 2021 bull run and the 2022 bear market. One among them is Algorand, which has been displaying immense volatility regardless of the market trend. Ever since the BTC price triggered a massive rise, the ALGO price has been closely following the trend and broke above the prolonged consolidation below $0.3.
The recent surge in legacy L! Token prices has directly impacted TVL growth across major chains like Cardano, Hedera, and Algorand. This has caused a major rise in the trader’s interest and as a result, the daily active address count over the platform has risen over 300% since the start of the month.
The daily active address (DAA) suggests the overall health of the platform by indicating the number of users contacting the platform regardless of whether they intend to perform a buy, sell, or swap trade. The rise in levels suggests an increase in trading activity, which in turn impacts the volatility of the token. This indicates the price could remain elevated regardless of the selling pressure mounted over the markets.
What’s next? When will the ALGO price reach $1?
The ALGO price has broken the downtrend much before and appears to have ignited a strong ascending trend. The volumes have risen exceptionally well, reaching levels not visited in history. This suggests a massive rise in the trader’s interest in the token, which may keep the levels elevated regardless of the bearish pressures. Besides, the RSI has hit the highest level and hence may face a small pullback.
Now that the Algorand price has already dropped from the high of around $0.61, an extended pullback may drag the levels slightly below $0.5. As the bullish momentum remains elevated, the ALGO price is expected to revamp a rebound and mark highs at $0.7 initially and later head towards $1.
