Algorand (ALGO) has increased by 19% in the past 24 hours, becoming the strongest bullish cryptocurrency in the market. This double-digit increase has pushed the altcoin's price to its highest level in two years, reaching $0.34.
With increasingly active trading, ALGO's price may attempt to surpass the $1 mark for the first time since 2022. This analysis will clarify why this could happen.
Algorand's open interest contract reaches all-time high
ALGO's double-digit price increase is accompanied by a significant rise in open interest (OI). ALGO's open interest has increased by 28% in the past 24 hours, reaching a record high of $81 million.
Open Interest (OI) in ALGO futures | Source: Santiment
Open interest measures the total number of outstanding contracts (futures or options) in a derivative market for an asset, reflecting the level of investor participation. When this metric rises sharply during a price increase, it indicates growing confidence and market participation. This is a signal that the price increase is supported by strong demand and suggests the potential for sustainable price growth.
Furthermore, ALGO's MACD indicator on the daily chart also reinforces this bullish outlook. At this moment, the MACD line (green) is above the signal line and is sloping upward.
ALGO's MACD Indicator | Source: TradingView
The MACD indicator measures price trends and momentum while identifying potential reversal points. In the case of ALGO, when the MACD line is above the signal line, the asset's price is experiencing upward momentum, signaling a buying opportunity.
ALGO Price Prediction: Is the $1 mark within reach?
With trading at $0.34, ALGO's price is currently holding above the critical support level of $0.30. If this level continues to be solidified as a strong support base, the altcoin's price could aim for $0.47. A breakout above this resistance level could push the price above $0.50 and bring the $1 mark into sight.
Daily ALGO/USDT Chart | Source: TradingView
However, changes in market sentiment could nullify this bullish outlook. If selling pressure increases, ALGO's price could erase recent gains, dropping below the $0.30 support level and even risking a return to the $0.08 level.