Algorand (ALGO) Could Be Your Best Crypto Buy Right Now – Here’s Why

The altcoin market has made a strong recovery, rising from the 2022 crypto bear market and entering a new bull phase. While Bitcoin (BTC) remains in a short-term bearish consolidation, large-cap altcoins are driving the market forward, fueled by increased cash inflows.

Among these, Algorand (ALGO), a rapidly growing layer-one (L1) blockchain secured by the proof-of-stake (PoS) consensus mechanism, has emerged as one of the top performers.

In just the past five weeks, ALGO has surged by more than 400%, reaching a 31-month high slightly above 60 cents. This price movement leaves the token about 85% away from retesting its all-time high (ATH) of $3.56, set more than five years ago.

Why Bet on Algorand in this Bull Cycle

The Algorand blockchain has grown to a vibrant web3 ecosystem, with more than $194 million in total value locked (TVL) and over $50 million in stablecoins market cap. As the Algorand blockchain prepares to launch the staking rewards before the end of this month, the network’s activity has significantly surged in the recent past 

According to data from IntoTheBlock, active addresses on the Algorand network have skyrocketed by over 300% since December 1. The number of active addresses now hovers around 313,000, signaling increased interest and growing user engagement with the platform.

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Potential for a Rally: ALGO Eyes ATH

As many ‘Dino’ altcoins try to replicate the success of Ripple Labs’ XRP, there’s a possibility that ALGO’s price could continue its upward trend, bringing it closer to its ATH in the near future. With a fully diluted market cap of about $4.2 billion and an average daily trading volume of $2 billion, ALGO is in a strong position. However, a brief period of cooling off is likely before the bull run resumes.

Despite an impressive performance in late November, ALGO’s spot cash flow has turned negative over the past two days, dropping by about $10 million. In the event of a selloff, ALGO is expected to find solid support between 28 cents and 45 cents, providing a buffer against further declines.

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