AI predicts Algorand price for year-end as ALGO hits new annual high

Algorand (ALGO) has been attracting attention in the cryptocurrency market, trading at $0.44 after a dramatic 17% daily rise and an impressive 47% rise over the past week.

The token has risen above its annual high of $0.32 set in March, reaching levels not seen since November 2022.
With on-chain metrics signaling bullish momentum, ALGO has attracted the attention of traders and investors speculating on year-end price action.

ALGO breaks key resistance levels

ALGO’s current rally has catapulted it above a long-term horizontal resistance area and consolidated a new yearly high. This uptrend is in line with a broader market recovery and has been driven by strong fundamentals within the Algorand ecosystem.

Notably, Algorand’s Total Value Locked (TVL) is up 59% this week, from $117.39 million on November 22 to $187.55 million at the time of writing DefiLlama.

This growth indicates increased user activity and ecosystem development, which are crucial factors driving the price increase.

At the same time, CoinGlass The data shows that Algorand is showing strong bullish momentum, reflected in a 147.45% increase in derivatives trading volume to $2.00 billion and a 34.34% increase in open interest (OI) to 165.93 million US dollar shows.

These metrics reflect significant market interest and the entry of new capital, which is often a harbinger of further price increases.

The long/short ratio across all platforms is trending bullish, with Binance’s ALGO/USDT ratio at 1.2202 and the OKX ratio at 1.09, suggesting that traders are largely bullish.

Liquidation data supports this assessment as 24-hour short liquidations totaled $2.98 million, significantly exceeding long liquidations at $1.47 million, suggesting that short Positions come under pressure as prices rise.

Additionally, top trader data from Binance highlights a strong long bias with a long/short position ratio of 1.9423.

Overall, the data suggests a continued bullish outlook for ALGO, although traders should remain cautious of potential corrections given the rapid gains and overbought RSI readings.

Finbold also identified ALGO’s buy signal last week, based on technical indicators consistent with the token’s impressive bullish momentum.

Technical Indicators: Strength and Caution

Technical indicators have also provided convincing bullish signals. The formation of a “golden cross” where the 50-day SMA crosses above the 200-day SMA indicates a robust uptrend and has historically been a reliable buy signal.

However, caution is advised as the RSI on the weekly chart is at 71, indicating that ALGO has entered overbought territory.

This increases the likelihood of a short-term decline or consolidation, which could provide a strategic entry point for traders looking to capitalize on the next potential upward move.

AI forecast for Algorand by the end of the year

With this in mind, Finbold consulted OpenAI’s ChatGPT-4o to gain insight into Algorand’s potential year-end price. According to the AI ​​model, ALGO could realistically reach a value of $0.70 to $0.85 by year-end if the current bullish momentum continues and investor interest remains strong.

In a more optimistic scenario, supported by a broader market recovery and continued ecosystem growth, ALGO could potentially push towards $1.

However, it is important to note that cryptocurrency markets are very volatile and actual prices may differ from forecasts.

Therefore, investors should conduct thorough research and consider several factors when evaluating potential investments.

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