Is Algorand (ALGO) set for a comeback in 2025? Explore price predictions, technical patterns, ecosystem challenges, and whether ALGO’s recent momentum could mark a major reversal for the once-hyped blockchain.
Algorand (ALGO), once celebrated as a next-generation blockchain poised to revolutionize the decentralized world, is now treading the line between recovery and decline.
Despite struggling fundamentals, technical patterns and renewed market interest hint that a rebound might be on the horizon. Here’s a comprehensive breakdown of Algorand’s current situation, future potential, and the key signals every investor should watch.
Current Price Snapshot
As of April 25, 2025, Algorand is trading at $0.2236, up 6,93%, slightly above this month’s low of $0.1480, but still +90% below its all-time high.
Although this paints a bleak picture, short-term price momentum shows a promising upward trend, with technical indicators and trading activity offering renewed optimism.
Fundamental Challenges: A Ghost Chain in Decline
1. Decreasing Developer and User Activity: Third-party data now classify Algorand as a “ghost chain” due to the significant drop in developer and user engagement over recent years.
2. Shrinking DeFi Presence: Total Value Locked (TVL) has shrunk from an all-time high of $395 million to just $109 million.
Compared to rising chains like Base, Sonic, and Berachain, Algorand’s ecosystem appears stagnant.
Top projects still active in the ecosystem include Lofty, Folks Finance, Reti Finance, and Vesta Equity.
3. Low DEX Volume: Daily decentralized exchange (DEX) volume on Algorand is just $1.48 million, far below Ethereum, Solana, and other top chains that transact in the billions.
4. Staking Liquidations: Over the last 30 days alone, the network has seen the liquidation of 301 million ALGO tokens (~$65 million), with the staking ratio dropping to 12.5%.
5. Small Stablecoin Market Cap: While the stablecoin market on Algorand has grown slightly to $140 million, it’s still modest compared to leading blockchains.
Technical Analysis: Bullish Patterns Forming
1. Weekly Chart: Double Bottom Pattern
– Algorand has repeatedly bounced off the $0.097 level since 2023.
– A double-bottom pattern is visible with a neckline at $0.6135, signaling a potential 190% price surge if confirmed.
– A fall below $0.09 would negate this bullish scenario.
2. Daily Chart: Falling Wedge Breakout
– A falling wedge pattern recently completed, a typically bullish reversal signal.
– The breakout from the wedge targets a move toward $0.2880, offering short-term price potential.
– The Relative Strength Index (RSI) and Stochastics have both turned upward, further confirming momentum.
On-Chain Activity & Market Sentiment
1. Spiking Volume and Addresses
– April 14 saw a 12% price surge, fueled by a 300% increase in ALGO/USDT volume on Binance and higher activity on Kraken.
– Active addresses have increased to 100,000, reflecting 15% growth in a short time.
2. Technical Indicators
– RSI is at 68, approaching overbought territory.
– MACD shows a bullish crossover, indicating positive momentum.
New Strategic Partnerships & Utility
Algorand has recently partnered with an artificial intelligence firm to explore decentralized AI applications.
This collaboration, alongside real-world asset integration, introduces new utility layers to the ecosystem. The announcement resulted in a 5% price increase, suggesting the market values innovation beyond technical indicators.
Future Price Projections and ROI Estimates
While current market dynamics show volatility, long-term projections remain moderately optimistic based on a steady 5% annual growth model:
Monthly Forecast – 2025
1. April: $0.219 – $0.234 | ROI: 84%
2. May: $0.201 – $0.244 | ROI: 91.8%
3. June: $0.214 – $0.190 | ROI: 68,2%
4. July: $0.200 – $0.220 | ROI: 73%
5. August: $0.204 – $0.231 | ROI: 81.6%
6. September: $0.210 – $0.224 | ROI: 86.3%
7. October: $0.219 – $0.257 | ROI: 102%
8. December: $0.251 – $0.271 | ROI: 113.1%
Conclusion: Turning Point or Temporary Lift?
Algorand’s future remains uncertain. On one hand, its weakening fundamentals, such as a shrinking DeFi presence and low developer activity, pose real threats.
On the other, its strong technical setup, increasing on-chain engagement, and strategic partnerships signal a potentially undervalued asset.
Whether ALGO will reclaim its former glory hinges on the successful execution of new ecosystem initiatives, continued real-world integration, and its ability to reignite developer interest.
The current phase may represent a compelling entry point for risk-tolerant investors, but with cautious optimism.
This press release has also been published on VRITIMES
