ALGO exploded with a 66% trading volume while volatility is low: Is it about to rise to the sky?

Algorand ( ALGO ) recorded a 66% increase in transaction volume over the past week, the highest among all chains being followed.

At the same time, volatility has decreased to 65.57%, marking the lowest level in the past 30 days. This rare combination of strong usage increase and narrowing volatility occurs just as ALGO is testing the upper threshold of a multi-month downward price channel.

With the increasing development momentum of the network and the tightening technical pressures, investors are closely following to wait for a decisive movement.

Calm before the price surge?

Transaction activity on the Algorand network surged 66% in just one week, making it the chain with the fastest volume growth during this period.

At the same time, the volatility level decreased to 65.57% — the lowest in a month.

The rare combination of high activity and declining volatility often indicates signs of a quiet accumulation process and growing investment confidence.

Source: IntoTheBlockFurthermore, ALGO is currently testing the upper threshold of the descending trend channel, increasing the likelihood of a strong price movement in a clear direction.

Meanwhile, data from IntoTheBlock shows that the activity of addresses is sending mixed signals. The number of addresses with a zero balance has sharply increased by 23.29%, while the number of new and active addresses has decreased by 23.9% and 9.12%, respectively.

This reflects a decrease in engagement from both new and existing users, despite an increase in transaction volume.

This divergence implies that, although network usage is increasing, retail investors remain cautious. This could hinder short-term gains unless the price breaks out clearly and attracts new attention from the market.

Whales are quietly preparing for the ALGO breakout?

In the past 30 days, whale wallets have increased their ALGO holdings by 5.12%, while retail investors and the average group have reduced their exposure.

The accumulation activity of large investors during this period of price compression aligns with historical behavioral patterns before breakout phases.

Whales often act early, absorbing liquidity when market sentiment is still neutral. Their holding amounts increase, indicating growing confidence from knowledgeable investors.

If the trend continues and is confirmed by technical signals, it could reinforce the argument for the current accumulation phase and confirm the strength behind any potential breakout coming up.

Source: IntoTheBlock## Will ALGO be ready breakout long-term bearish price channel?

At the time of writing, Algorand is approaching the upper threshold of the downward trend channel that has been in place since the end of 2024.

The next key resistance is at $0.2541, with further upside targets at $0.3006 and $0.3491. Meanwhile, the key support levels are located at $0.1814 and $0.1511.

The RSI index is currently at 50.06, a neutral zone indicating that there is still room for further price increase.

If ALGO clearly breaks out above the 0.2541 dollar level, the market structure will shift to a bullish trend and investor sentiment may change significantly, opening up the next growth opportunity in the short term.

Source: TradingViewNet cash flow data over spot shows a balanced state, with both inflows and outflows at around $1.89 million. This shows that traders are keeping a balanced and cautious attitude, not ready to commit in any direction unless there is a clearer signal.

Such neutrality is commonly observed during significant technical retest phases. However, the current equilibrium may change rapidly if the price breaks through resistance or is rejected, making this moment a turning point in trend formation.

Is the level 0.21 dollars the liquidation trigger zone for ALGO?

The 24-hour liquidation map on Binance shows dense clusters of orders around the $0.21 level, confirming this is an important resistance area.

These command clusters suggest that if the price exceeds $0.21, it may trigger the liquidation of short orders, thereby driving a stronger upward momentum.

On the contrary, if it cannot break through this area, selling pressure from Long positions using high leverage may emerge, creating the risk of a short-term price decline.

Source: CoinGlassTrading activity has surged, volatility has decreased, and the increasing accumulation trend from whales is creating a solid bullish argument for Algorand.

However, the caution shown through address activity and net cash flow neutrality shows that the market is still in a state of "wait and see". All eyes are now on the $0.21–0.254 resistance zone.

If the breakout is confirmed, it could trigger a bullish momentum thanks to market dynamics, bringing ALGO into a new uptrend phase after many months of consolidation.

Minh Anh