ALGO’s transaction volume surged 66% as volatility dropped, suggesting organic accumulation.
Whale dominance increased by 5.12%, while retail metrics and spot flows remain neutral.
Algorand [ALGO] recorded a 66% surge in transaction volume over the past week, the highest among all tracked chains.
At the same time, volatility declined to 65.57%, marking a new 30-day low. This rare combination of rising usage and contracting volatility emerges as ALGO tests the upper boundary of its multi-month descending channel.
With network momentum building and technical pressure tightening, market participants are closely watching for a decisive move.
Is ALGO’s calm volatility hiding a storm beneath it?
Transaction activity on the Algorand network has jumped 66% in just one week, making it the fastest-growing chain by volume during that period.
At the same time, volatility has dropped to 65.57%, the lowest level in a month.
This rare combination of rising activity and falling volatility often points to quiet accumulation and growing investor confidence.
Source: IntoTheBlock
Moreover, ALGO is now testing the upper boundary of a descending channel, increasing the likelihood of a strong directional move.
Meanwhile, the Address Activity tells a mixed story, according to IntoTheBlock data. While zero-balance addresses have surged by 23.29%, new and active addresses have fallen by 23.90% and 9.12%, respectively.
This reflects declining engagement from both newcomers and existing users, despite the increase in transaction volume.
Such divergence implies that although usage is growing, retail participation remains cautious. This could cap short-term upside unless price breaks out decisively and attracts fresh attention.
Are whales quietly preparing for an ALGO breakout?
Over the last thirty days, whale wallets have increased their ALGO holdings by 5.12%, while retail and mid-tier investors have reduced exposure.
This accumulation by large holders during a period of compression aligns with historical breakout behavior.
Whales often position early, absorbing liquidity while sentiment remains neutral. Their growing share signals rising conviction among informed participants.
If this trend continues alongside technical confirmation, it may validate the current accumulation narrative and signal strength behind any potential breakout.
Source: IntoTheBlock
Will ALGO finally break out of its long-term descending channel?
At the time of writing, Algorand was pressing against the upper boundary of a descending channel that has persisted since late 2024.
The next key resistance sits at $0.2541, with additional upside targets at $0.3006 and $0.3491. Support holds at $0.1814 and $0.1511.
A clean breakout above $0.2541 would flip the market structure bullish and shift sentiment decisively, potentially opening room for further gains in the short term.
Source: TradingView
Spot Netflow data shows equilibrium, with inflows and outflows both recorded at around $1.89 million. This indicates that traders remain balanced and cautious, unwilling to commit in either direction without a clearer signal.
Such neutrality is typical during critical technical retests. The current balance may quickly shift if price action breaks resistance or faces a rejection, making this moment pivotal for trend formation.
Is $0.21 the liquidation trigger zone for ALGO?
Binance’s 24-hour liquidation heatmap reveals dense clusters around $0.21, confirming it as a critical resistance zone.
These clusters suggest that a move above this level could trigger short liquidations and fuel upward price momentum.
On the other hand, failure to break through might result in selling pressure from overleveraged longs.
Source: CoinGlass
Algorand’s surge in transaction activity, reduced volatility, and rising whale accumulation build a strong bullish case.
However, the caution seen in address activity and neutral netflows shows the market is still in wait-and-see mode. All eyes are now on the $0.21–$0.2541 resistance zone.
A confirmed breakout could trigger momentum-driven upside and shift ALGO into a new bullish phase after months of consolidation.
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