Algorand bulls target $0.50

Algorand's price rises over 15% on Friday to a two-year high after rising more than treble the day before.

On-chain data shows ALGO's Open Interest and TVL at record highs.

A weekly candlestick closing below $0.276 would disprove bullishness.

After surging 54% the week before, Algorand (ALGO) moves up more than 15% on Friday, breaking over the year-to-date high of $0.33 set in March and hitting levels not seen in almost two years. ALGO's Open Interest (OI) and Total Value Locked (TVL) are soaring to record levels, predicting a further surge in the coming days.

Algorand price has risen almost 30% this week after rising 54% the week before. On Friday, it trades up more than 15%, hitting levels not seen since November 8, 2022.

ALGO may retest its October 2022 weekly high of $0.45 if it continues to rise.

The weekly chart's Relative Strength Index (RSI) momentum indicator is 79, indicating overbought circumstances and a growing chance of a correction. RSIs falling from overbought area may indicate a downturn.

The crypto intelligence tracker DefiLlama shows Algorand's TVL growing from $125.25 million on Tuesday to $157.97 million on Friday since early November.

TVL rose 26%, indicating Algorand ecosystem activity and interest. It shows more users deposit or use assets in ALGO-based protocols, supporting the optimistic outlook.

Open Interest (OI) in Algorand also supports bullishness. Coinglass reports that exchange ALGO futures OI climbed from $75.69 million on Tuesday to $95.87 million on Friday, the biggest amount since November 2022. An growing OI indicates fresh money entering the market and purchasing, suggesting an Algorand price increase.

Finally, ALGO investments' Annual Percentage Yield (APY) has drawn attention, especially before Thanksgiving, signaling investors want substantial returns.

On-chain data and technical analysis support the optimistic view, however if the ALGO weekly candlestick closes below $0.27, the bullish thesis will be undermined, causing a price decrease below $0.25.

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