Algorand Explodes 34% as On-Chain Metrics Hit New Highs

• Algorand is showing phenomenal bullish momentum with a 34% surge in the last 24 hours.
• ALGO demonstrated a remarkable on-chain growth in the last few days, which is also a catalyst behind the bullish rally.

Algorand (ALGO) is demonstrating extreme bullish momentum on the daily technical chart. The altcoin has managed to break its 50-day EMA at $0.1977 as well as its 200-day EMA at $0.2181, a key technical milestone that is usually followed by prolonged rallies. Moreover, as per CMC data, the ALGO price has surged by almost 34% and its daily trading volume has surged by 686% in the last 24 hours.

The breakout above these important moving averages is a move in the market sentiment to a bullish market. A break above the 50-day and 200-day EMAs usually shows that the buyers are in control and they are ready to buy at higher prices. This technical pattern, along with positive momentum indicators, indicates that ALGO might be in a new stage of price increase.

Behind this technical breakout is strong underlying data that shows increasing network adoption and utility. Algorand has seen a 30% increase in transaction volume in the last week to 5.8 million transactions, and active addresses are up 22% to 78,766. The network fees earned also increased by 25% to $3,600, which means more people are using the network and demanding the services of the Algorand blockchain.

Most notably, perhaps, the supply of stablecoins on the Algorand network grew by 77% in a week to hit the mark of $120 million, with the majority of it being USD Coin, amounting to $118 million. This large amount of stablecoins is normally a sign of more liquidity and the possibility of more trading.

Although these metrics are still not on the same level as other competitor networks, the fast-growing trend hints that Algorand is making significant progress in the decentralized finance space.

What’s Next For ALGO Price?

Source: TradingviewThe RSI and MACD are both showing positive values, which further supports the bullish technical perspective. The positive momentum of the RSI shows that the buying pressure is stronger than the selling pressure, and the bullish signal of the MACD shows that the short-term momentum is gaining momentum compared to the longer-term trends.

The positive technical indicators and robust fundamental growth statistics place ALGO in a good position to continue moving higher, although traders should be wary of possible resistance levels and market volatility that may work against this bullish argument.

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