Algorand (ALGO) Market Analysis – May 2025
Overview: Algorand has shown a significant bounce from its deep undervaluation zones, confirming a bullish structure on the daily timeframe. According to the bull market valuation tool, ALGO remains in the accumulation phase, suggesting more upside potential.
Chart Observations: ALGO was in deep undervaluation throughout 2024, indicating a major buy signal. Price surged from $0.09 to $0.61 (500%+ gain) in Q4 2024. After overvaluation was reached, a healthy correction followed. ALGO is again bouncing off undervalued territory with more upside expected.
Trade Setup:
Entry Zone: $0.19–$0.22 (current accumulation level near major support)
Targets:
1. Target 1: $0.38 (short-term resistance)
2. Target 2: $0.55 (mid-term)
3. Target 3: $0.70+ (potential breakout above previous high if bull run accelerates)
Stop Loss: $0.16 (below recent support and undervaluation confirmation zone)
Broader Market Context: Total Crypto Market Cap is holding strong at $3.2T; aiming for $5.7T. Still bullish. Altcoin Market Cap is consolidating above $1.2T support; target $2.4T. USDT Dominance is falling, indicating capital is flowing back into altcoins.
Conclusion: The market is still in a bullish macro phase. ALGO is in a prime zone for long-term accumulation with a favorable risk-to-reward ratio. Current dips present buying opportunities before the next wave of upside.