Algorand is rising today: what traders are watching (January 2)

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Algorand Surges 11.43% to $0.1248 Today

Highlights

Algorand now ranks fifth among blockchains for the number of funded addresses, indicating strong growth in active user participation.
Algorand Foundation is investing in long-term network infrastructure with a focus on expanding beyond financial speculation into areas like Web3 and decentralized organizations.
Recent ecosystem developments emphasize Algorand's drive to broaden practical use cases and real-world utility for its blockchain network.

User base expansion as infrastructure growth drives sentiment shift

Algorand's focus on real-world utility and decentralized adoption has been highlighted by recent confirmation that it now ranks fifth among blockchains for the number of funded addresses, signaling growth in active user participation. The Algorand Foundation continues to prioritize long-term infrastructure, expanding the ecosystem to incorporate applications beyond financial speculation, including work in Web3 and decentralized organizations. These efforts underscore ongoing investment aimed at broadening practical use cases for the network.

Anton Kharitonov, expert at Traders Union, believes ALGO shows only weak signs of recovery. He points out that the token failed to reclaim its MA-50 and MA-200, maintaining a pronounced long-term downtrend. Kharitonov emphasizes that strong intraday buyer activity is offset by a bearish MACD and neutral oscillators, raising doubts about the sustainability of the current rally. The analyst remains cautious on real adoption, noting the growth in funded addresses may not translate into lasting price support given heavy overhead resistance. "I do not see strong evidence for a reversal here — ALGO faces significant risk of further decline once short-term momentum fades."

Viktoras Karapetjanc, expert at Traders Union, sees clear signals of strengthening fundamentals in Algorand’s expanding user base and ecosystem development. The analyst notes that ranking fifth in funded addresses and ongoing focus on long-term infrastructure point to robust adoption. He remains confident that with this foundation, market participants may soon price in the network's practical use cases beyond speculation. Karapetjanc highlights that buyers have stepped in on volatility, setting the stage for a move higher if resistance breaks. "With strong utility trends and a resilient community, I expect further growth and believe the bullish structure remains firmly in place."

Jainam Mehta, market strategist, notes that ALGO trades in a tight range amid conflicting technical signals. He sees dynamic support at $0.1236 and resistance at $0.1318 as key tactical levels, with momentum indicators lacking clear direction. Mehta suggests short-term traders watch for a potential breakout above the MA-50, but warns that an overbought Stoch RSI could lead to a swift reversal. "A contrarian setup could emerge quickly — I would stay flexible and be ready to act if the trend shifts at these pivots."

Mixed momentum and resistance signals as volatility heightens near session highs

The nearest dynamic support for ALGO is found at the Ichimoku Kijun level of $0.1236, with resistance likely at the MA-50 ($0.1318), as the price sits just below this medium-term threshold. Momentum indicators give a mixed outlook: the daily MACD points to strong bearish momentum and the ADX confirms a persistent trend, while both RSI (48.77) and CCI remain near neutral. The Stoch RSI is fully overbought at 100, suggesting that the current intraday rally may soon face exhaustion. Bull/Bear Power indicates buyers are strong intraday, with the price currently at session highs and notable volatility following a gap-up open. These oscillators and momentum divergences highlight the potential for increased volatility or short-term reversals.

Previously it was reported that Algorand was showing a short-term upward bias above its 20-day moving average, but remained weighed down by medium- and long-term resistance, particularly at the 50- and 200-day MAs, with sellers in control overall. Mixed momentum readings from RSI, MACD, and other oscillators signaled that despite a recent bullish gap, volatility and persistent bearish signals favored further downside risk, with limited bullish potential unless a decisive breakout unfolded above key resistance levels.

Source of Data: ALGO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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