- Whale accumulation and retail user activity surged, yet ALGO remained stuck in a tight price range.
- Derivatives metrics showed low conviction, while spot demand and oversold RSI hinted at rebound potential.
Algorand [ALGO] just surged to the top of Nansen’s leaderboard with a 72% spike in active addresses, now surpassing 1.2 million users. This rapid expansion in user activity shows a strong wave of adoption.
However, despite this surge in engagement, the price has slipped to $0.1882, down 2.53% in the past 24 hours at the time of writing.
This divergence between growth and price action suggests underlying caution among investors.
For now, user momentum is rising, but the market has yet to fully respond to this bullish network signal.
Are the whales circling back around ALGO?
Large Holders have turned net buyers, posting a 68.77% increase in inflows over the past seven days.
This reversal comes after a 107% drop in netflows during the prior thirty-day window, showing renewed confidence from key players.
The 90-day metric also supports this trend with a 227.50% increase. Therefore, while the rebound is still fresh, it aligns with the broader accumulation narrative.
If sustained, whale demand could offer critical support as ALGO continues testing the lower boundary of its consolidation range.
Source: IntoTheBlock
Why are buyers active on the spot while derivatives cool off?
The Spot Taker CVD remains buy-dominant, signaling strong retail confidence as aggressive market buying surpasses sell pressure.
However, Derivatives activity is declining—Volume dropped 8.87%, and Open Interest fell 3.78%.
This contrast suggests spot traders are accumulating, while leveraged participants retreat, raising questions about overall market conviction.
For sustained upward momentum, derivatives metrics must recover.
Source: CryptoQuant
Is ALGO’s imbalance in liquidations telling a deeper story?
At press time, liquidation data shows long traders lost over $10.7K, while short positions remained untouched, signaling one-sided losses for bulls during price drops.
The market appears skewed, with overexposed longs and well-positioned shorts, often leading to volatility traps and price consolidation.
Without significant short liquidations, breakout momentum stays weak.
For a bullish reversal, short exposure must rise and be flushed out, clearing the path upward.
Source: CoinGlass
Will ALGO finally escape its $0.16–$0.25 sideways trap?
Technically, ALGO remains range-bound, bouncing between a demand zone near $0.16 and resistance at $0.25.
Price action respects both boundaries, forming a horizontal channel that limits directional movement.
However, at press time, the Stochastic RSI now showed near-oversold conditions, suggesting a short-term bounce is possible. Still, previous failures near $0.25 hint at exhaustion without stronger demand.
Therefore, a breakout requires both bullish conviction and a trigger—possibly a catalyst event or whale-led rally.
Source: TradingView
Can network momentum overcome price inertia?
Despite Algorand’s sharp rise in user activity and returning whale demand, its price remains trapped in a tight range.
While spot metrics and technical indicators support a bounce, weak Derivatives participation and one-sided liquidations signal hesitation.
A breakout is possible—but only if conviction spreads across all market layers.
