The Algorand (ALGO) coin shows renewed strength indicators after recently testing the support level of $0.20.
Despite the overall market downturn, ALGO maintains its position and generates interest through a range of technical signals, increased staking participation, and new access to U.S. Treasury bond yields.
As user engagement increases and DeFi activity gains momentum, the coin has begun to reflect an upward trend.
Analysts are monitoring ALGO's retest of previous levels that had previously triggered upward momentum. The ongoing growth of the community and DeFi developments drive optimism even amid short-term volatility.
● ALGO's price is testing support levels amid market downturn
According to analysts, ALGO recently retested the support area of $0.20 after facing resistance at $0.26. CryptoTony indicated that ALGO is 'in full send mode' after retesting support, which historically aligns with bullish reversals. 'Perb Nest' added that the $0.215 area held strong, leading to a rebound. If the price maintains this range, it is expected to head towards $0.26, with $0.323 being the next resistance level. However, a daily close below $0.215 could lead to a drop towards $0.18.
On the four-hour chart, the $0.20 level remains critical. Perb Nest stated that this support has been tested several times and still holds.
Algorand is currently trading at $0.2042, with a trading volume exceeding $92 million over the last 24 hours. This reflects a decrease of 6.15% in one day and a loss of 16.49% over the past week.
Betting data over the past five months indicates increasing confidence in the network. CryptoTony noted a 54% increase in total ALGO staked, and a 132% rise in electronic accounts.
At the same time, the share of the Algorand Foundation has decreased by 33%, indicating broader community involvement. This trend may support price stability as control shifts towards users rather than centralized holdings.
Launch of access to exchange-traded funds in U.S. Treasury bonds through decentralized finance (DeFi) on Algorand
New decentralized finance opportunities also add value to ALGO. BullifyX reported that MidasRWA launched mTBILL on Algorand, allowing users to access ETFs in U.S. Treasury bonds without a minimum investment.
The platform offers a yield of 4.06%, enabling fast and low-cost swaps. Reportedly, one of the initial swaps moved two million dollars in two seconds for less than half a cent.
With stable technical patterns and improved on-chain metrics, analysts believe ALGO may test higher resistance levels soon. Sustained strength at the $0.20 level, increasing user activity, and growing DeFi participation form a more resilient price base.