Altcoin investors are on the lookout for better returns and new opportunities in the volatile cryptocurrency market. Their quest often leads to mixed results, with some achieving significant profits while others endure long waits without the desired financial gains. Algorand (ALGO) is one such altcoin that could potentially rise to $0.229 in June, providing a beacon of hope for its investors.
Current ALGO Price Analysis
As Bitcoin’s price surged past $70,000, it spurred increased activity in the altcoin market, with many cryptocurrencies experiencing an upturn. This positive momentum, especially ahead of the ETH ETF launch, suggests that the market is gearing up for new highs. Currently, Algorand’s (ALGO) situation remains intriguing.
Data from IntoTheBlock reveals that only 9.39% of Algorand (ALGO) investors are in profit. This is a stark contrast to weeks ago when altcoins like FLOKI Coin saw profitability rates exceeding 90%. The low profit rate for ALGO indicates a potentially attractive buying opportunity.
Why Are Investors Holding Onto ALGO?
Despite the low profitability, a striking 88.40% of ALGO investors continue to hold their positions. These investors have an average holding period of 11 months, which is notable compared to other altcoins. For instance, Cardano, known for its “buy and hold” strategy, has a 12-month average holding period, making ALGO’s investor loyalty noteworthy.
Around 20% of ALGO’s supply is controlled by whales, and this figure has increased by approximately 1% since May. Additionally, the number of daily active addresses has surpassed 54,000, a commendable figure when compared to cryptocurrencies like Avalanche and Dogecoin. This points to a positive trend in Algorand’s network activity.
Factors Influencing ALGO’s Potential Surge
Several factors could influence ALGO’s potential surge:
- Increased whale holdings, indicating confidence among major investors.
- Growing number of daily active addresses, suggesting rising user engagement.
- Doubling of daily transactions since the end of last year, driven by low transaction fees.
- Stable technical analysis with price hovering between $0.200 and $0.169.
From a technical standpoint, Algorand’s price has remained between $0.200 and $0.169 since late April. A breakout above the $0.2 mark could potentially trigger a rally towards $0.229, representing a 26% increase, and ending the prolonged period of stagnation.