Algorand is one of the fastest growing crypto in terms of gains. According to CoinGecko, the token has appreciated by 30% in the last two weeks. With the broader crypto market rallying as Bitcoin breaks its crucial $21,000 resistance, ALGO is set to gain more in the next few days. 

The Total Value Locked department is where the ecosystem gained the most. According to DeFiLlama, Algorand’s TVL yesterday hit $177 million in value. This uptick in TVL is a bullish indicator that the ecosystem still has the momentum to reach new milestones. 

However, the token might be on shaky ground as the bears test its current support at $0.2275. 

Image: Forkast

Algorand Developments On-Chain

Algorand’s G6 governance commitment period ended yesterday, January 16. According to Algorand blockchain explorer, AlgoExplorer, more than 4.1 billion ALGO is staked by over 31,763 governors. 

Image: DeFiLlama

The ecosystem would pay back the governors with an annual return rate of 6.52%. This way of governance makes the Algorand ecosystem stay true to the tenets of decentralized finance. To add to this bullishness, the ecosystem also processed its 1 billionth transaction. 

With the ecosystem able to handle more than 2,881 swaps on-chain, Algorand is expected to continue growing in popularity.

Did you know Algorand can handle over 10x the number of AMM swaps per second relative to #solana #Avalanche #polygon #bsc #celo #ethereum? $sol $matic $algo $bsc $eth 👇 pic.twitter.com/7hBmduanfM

— Axetrax (@Axetrax22) January 14, 2023

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Can ALGO Continue Its Climb? 

The token is currently trading at $0.2329, a nearly 1% decrease from yesterday’s $0.2341 price. The rejection at $0.2418 would delay ALGO’s recovery. With the token’s support at $0.2365 broken, ALGO investors should be able to buy the current dip in price as analysts are still bullish with the token’s price movement. 

With improving macro trends, investors and traders are more likely to enter riskier assets like cryptocurrencies. Not to mention that Bitcoin, the face of the crypto market, has broken through crucial resistance at $21k. With ALGO’s high correlation to BTC, ALGO can ride Bitcoin’s rally to reach higher highs. 

Investors and traders should watch the current market situation of ALGO as the token’s current price position as the ecosystem has been having trouble maintaining a social presence. 

ALGO total market cap at $1.6 billion on the daily chart | Chart: TradingView.com

ALGO holders should also watch Bitcoin’s price rise in the next few days or weeks. The $21k resistance break wiped out the lost ground following the collapse of FTX. If BTC continues its bullish recovery in the next few weeks or days, ALGO can ride the upward wave. 

But with the token facing a slight correction, this bullish break might be delayed as the bears retest the current support at $0.2275. If the bears win the struggle, the token’s recovery will inevitably be delayed.

Featured image from ThoughtCo

The touted “Ethereum killer” Solana has been on the down-low since its association with the collapsed exchange FTX. However, it seems as though 2023 has new plans for the struggling ecosystem with its native token SOL up by 13% based on CoinGecko figures, Tuesday.

This huge uptick in price led to SOL reclaiming double digits after dipping as long as $7.96 back in December 29. 

A Breath Of Fresh Air For Solana

After the ecosystem lost most of its value last year, this price pump is a breath of fresh air for investors and holders of SOL. Even though the bears left their mark on investor sentiment on SOL, some are still bullish for a possible reversal. 

This, however, is not surprising. Solana has been taking its time in distancing itself from being known as one of the “Sam coins”, with Messari releasing a detailed overview about the ecosystem on December 15. 

Solana’s token isn’t the only one that was hit hard, however. Solana’s NFT market has suffered through this whole debacle as DeGods and y00ts, two of the most prominent collections on-chain, decided to migrate to Polygon. 

Solana NFTs sure don’t look dead pic.twitter.com/UXNqJ6wRyi

— Mamba 🐍 (@Mamba248x) December 31, 2022

However, this has not stopped Solana from still maintaining its top 2 spot in terms of NFT sales volume. Transactions also support a bullish future for its native token as it still retains its top 1 spot in transaction volume according to Delphi Digital, an institutional grade research platform. 

With Solana leading in active addresses against competitors as well, we can definitely see why the SOL has just shot straight up. 

Macro And FUD, Not A Great Mix 

Even though the current bullishness is good news, investors and traders shouldn’t disregard the power of macroeconomics on crypto markets. With SOL still being highly correlated with Bitcoin, we can see SOL’s price move somewhat closely tied to BTC’s price movement. 

SOL total market cap at $4.3 billion on the daily chart | Chart: TradingView.com

This is especially concerning as BTC is strongly correlated with the traditional financial market, going as far as following the S&P 500 and the Dow Jones Index in many instances.

Not to mention that the U.S. Federal Reserve does plan to increase its interest rate if inflation does not slow down in the coming months. This will cause a slow down for SOL’s recovery in the coming months if the situation does not improve. 

For now, SOL investors are on their way to target $11.83 price resistance which, if broken, will provide a jump-off point for more gains in the future. 

-Featured Image: Shutterstock