Why did the price of ALGO go up?

Algorand (ALGO) increased by 2.57% in the last 24 hours, outperforming the overall crypto market, which gained 1.09%. Here’s why:

1. Technical signals show a positive trend – Indicators like MACD and RSI suggest upward momentum.
2. Renewed interest from Google partnership – News about Algorand’s role in Google’s AP2 payments protocol resurfaced.
3. Growing institutional involvement – ALGO was listed on tZERO, and European investment products are attracting more funds.

Deep Dive

1. Technical Rebound (Positive Signs)

Overview: ALGO’s price moved back above its 7-day simple moving average (SMA) of $0.1134. The MACD indicator, which helps identify momentum changes, turned positive for the first time since December 20. The RSI, a measure of whether an asset is overbought or oversold, improved from 37 to 43, moving out of the oversold zone.

What this means: Short-term traders see these signals as a shift toward upward momentum. Since ALGO is trading about 40% below its 30-day SMA ($0.1269), this bounce suggests investors are buying near what they consider a support level between $0.10 and $0.115.

What to watch: If ALGO closes above the 30-day SMA ($0.1269), it could confirm stronger buying interest.

2. Google Partnership Revival (Positive Impact)

Overview: Social media buzzed about Algorand’s involvement in Google’s AP2 Agentic Payments Protocol, first announced in the third quarter of 2025. This protocol uses AI to automate payments and benefits from Algorand’s fast transaction finality of 4.5 seconds.

What this means: Although this partnership isn’t new, the renewed attention connects ALGO to the growing AI-driven economy. Google’s reputation and Algorand’s advanced, quantum-resistant blockchain design (Algorand Foundation) have increased excitement among retail investors.

What to watch: Look for updates on how widely AP2 is being adopted or if Google Cloud expands its use of Algorand technology.

3. Institutional Flows (Mixed Signals)

Overview: On December 24, tZERO added ALGO to its regulated trading platform, making it easier for traditional investors to access. Meanwhile, European exchange-traded products (ETPs) like the 21Shares ALGO ETP have grown to $33 million in assets under management. However, hopes for a U.S. spot ETF remain unfulfilled.

What this means: The tZERO listing is a positive step for institutional access, but trading volume remains relatively low at $421 million over 24 hours. While institutional interest is increasing, it hasn’t yet led to consistent demand.

Conclusion

ALGO’s recent price increase is driven by both technical factors and renewed attention on its partnerships with major companies like Google. However, whether this momentum lasts depends on continued progress from these developments. Key point to watch: Can ALGO stay above $0.12 through the weekend, especially with lower trading activity during the holiday period?

What could affect the price of ALGO?

Algorand's future price depends on two main factors: growth in its ecosystem and ongoing selling pressure from its foundation.

1. Foundation Token Sales – Continued selling of ALGO tokens could slow down price gains.
2. Roadmap Progress – Planned upgrades might increase adoption in decentralized finance (DeFi) and traditional finance (TradFi) if successfully implemented.
3. Market Trends – A rebound in altcoins is needed for a lasting recovery in ALGO’s price.

Deep Dive

1. Foundation Treasury Management (Negative Impact)

Overview: In December 2025, the Algorand Foundation and Algorand Inc. sold about 50 million ALGO tokens, worth roughly $5.95 million. This ongoing selling has raised concerns in the community because it reduces the available supply of ALGO in the market, which can put downward pressure on the price. Some community members worry this creates a cycle where falling prices force more sales to fund operations (forum post).

What this means: The steady selling from the foundation offsets positive developments. To keep the price stable, there needs to be over $6 million in buying demand each week just to balance out these sales. Additionally, the circulating supply of ALGO has increased by 42% since 2022, which adds more selling pressure.

2. 2025+ Ecosystem Roadmap (Positive Impact)

Overview: Algorand has a roadmap focused on increasing adoption by businesses and financial institutions, including:

• Project King Safety: A planned update to Algorand’s economic model by 2026.
• AP2 Payments: A partnership with Google Cloud to enable AI-driven payment settlements.
• tZERO Integration: Starting December 2025, regulated institutional trading through tZERO.

What this means: If these projects succeed, ALGO could become more widely used for real-world payments and tokenizing real-world assets (RWA), which are expected to grow about 25% annually. However, the total value locked (TVL) on the Algorand network is currently low at $121 million (according to DefiLlama), and it would need to grow more than tenfold to significantly impact ALGO’s price.

3. Altcoin Market Dynamics (Mixed Impact)

Overview: ALGO’s price dropped 67% year-over-year in 2025, reflecting a broader struggle among altcoins. Bitcoin currently dominates the market with a 59.4% share (CoinMarketCap). The Fear & Greed Index is at 27, indicating cautious sentiment, but historical data shows that ALGO could rebound from its current relative strength index (RSI) range of 37-43.

What this means: If the market shifts back toward riskier assets like altcoins, ALGO’s price could rise. However, we are currently in a “Bitcoin Season,” where Bitcoin outperforms altcoins (Alt Season Index: 16/100), which delays this potential boost. ALGO’s price has been steady between $0.10 and $0.12 since August 2025, showing some accumulation but no strong upward momentum yet.

Conclusion

ALGO’s price outlook depends on balancing the selling pressure from the foundation with successful adoption of its payment and real-world asset projects. Key things to watch are the xGov treasury votes in the first quarter of 2026, which could change supply policies, and the transaction volume of AP2 payments as early signs of growth. The big question is whether Algorand can move from being a promising project to delivering real-world value before broader economic challenges make growth harder.

What are people saying about ALGO?

The Algorand (ALGO) community is feeling a mix of cautious optimism and frustration as technical signals suggest possible changes in momentum. Here’s what’s trending right now:

1. Positive chart patterns are facing strong resistance levels
2. Concerns about leadership are sparking debates about Algorand’s future
3. The story of undervalued technology is challenged by ongoing price struggles

Deep Dive

1. @CryptoJoeReal: Falling Wedge Breakout Expected 🔼 bullish

"#Algorand has a Falling Wedge on 1h chart – Target $0.1325"
– @CryptoJoeReal (4.7K followers · 76K impressions · 2025-12-20 05:33 UTC)
View original post
What this means: A falling wedge pattern often signals a potential price increase. If this plays out, ALGO could rise about 11% to reach $0.1325 from current levels.

2. @bpaynews: Year-End Price Target $0.115 🔽 bearish

"Critical resistance at $0.14 blocks rally potential – $0.113-$0.115 likely by Dec 31"
– @bpaynews (2K followers · 109K impressions · 2025-12-24 08:43 UTC)
View original post
What this means: This outlook is more cautious. It suggests ALGO might drop about 3% to around $0.113-$0.115 by the end of the year unless it breaks through the $0.14 resistance level.

3. @sherryland_: Concerns About Algorand’s Leadership ⚖️ bearish

"Algorand’s only real problem is its foundation – Change needed by 2026 for bullish case"
– @sherryland (2.5K followers · 41K impressions · 2025-12-25 13:03 UTC)
[View original post](https://x.com/sherryland/status/2004176253776286068)
What this means: This points to governance issues within Algorand’s foundation. While this is a negative signal, there’s hope that leadership changes by 2026 could improve the outlook.

Conclusion

Opinions on Algorand (ALGO) are mixed. Technical traders see potential for a rebound since the coin is currently oversold (RSI at 37.4), but fundamental analysts remain cautious due to leadership concerns. Keep an eye on the $0.14 resistance level—if ALGO closes above this on a daily basis, it could confirm a positive momentum shift. If it fails, the bearish price targets might hold. Additionally, with 64% of ALGO’s circulating supply held by large holders (Nansen), the buying and selling patterns of these “whales” could strongly influence short-term price moves.

What is the latest news about ALGO?

Algorand is showing strength through key partnerships and solid technology, even as it faces challenges in a cautious market. Here’s the latest update:

1. Agentic Payments Deal with Google (December 24, 2025) – Algorand (ALGO) is working with Google to use their AP2 protocol for business payment solutions.
2. Challenges in the U.S. Crypto Market (December 25, 2025) – ALGO has struggled due to regulatory issues and low trading activity.
3. Leader in Altcoin Stability (December 25, 2025) – ALGO stands out for maintaining steady prices during market downturns.

In-Depth Look

1. Agentic Payments Deal with Google (December 24, 2025)

What happened: Algorand teamed up with Google Cloud to use the Agentic Payments Protocol (AP2). This new system aims to make AI-powered transactions faster and more secure. This partnership boosts Algorand’s reputation for handling real-world business applications and could encourage more developers to build on its platform.

Why it matters: This is a positive sign for ALGO because it shows the technology is ready for serious business use. However, the real test will be how much this partnership increases actual transaction activity over time. (Cryptonewsland)

2. Challenges in the U.S. Crypto Market (December 25, 2025)

What happened: Despite early excitement about clearer U.S. crypto regulations, ALGO’s price dropped 63% in 2025. Experts say investors are favoring cryptocurrencies with more trading volume and liquidity. ALGO’s Money Flow Index (MFI) suggests it’s currently oversold, meaning it might be undervalued.

Why it matters: This is a mixed to negative sign for ALGO. While being oversold could lead to a price bounce, ALGO needs steady demand to push past resistance at $0.16. The network’s health, including developer activity, will be key to overcoming broader market challenges. (CCN)

3. Leader in Altcoin Stability (December 25, 2025)

What happened: During recent market slowdowns, ALGO has been one of the more stable altcoins. Even though its price dropped 38% over 60 days, it has held steady between $0.10 and $0.12, which analysts see as an important support level.

Why it matters: This is cautiously hopeful for ALGO. Its low price swings and strong community engagement might attract investors looking for stability. However, overall market sentiment remains cautious, with the Fear & Greed Index at 27, limiting strong upward moves. (Cryptonewsland)

Conclusion

Algorand is at a pivotal moment. Its partnership with Google shows promise for growing enterprise use, but price struggles highlight ongoing market doubts. The big question is whether Google’s AP2 integration can spark enough interest and trading activity to help ALGO overcome its current challenges, or if it will continue to be seen as a solid but quiet player focused more on fundamentals than hype.

What is expected in the development of ALGO?

Algorand is making important progress with these key updates planned for 2026:

1. Economic Sustainability Paper (Q1 2026) – A detailed plan on transaction fees and staking rewards to keep the network financially healthy.
2. AlgoKit 4.0 Launch (H1 2026) – A new developer toolkit powered by AI to make building decentralized apps easier.
3. Rocca Wallet Full Release (H1 2026) – A simple, secure wallet that doesn’t require seed phrases and uses passkey logins.

Deep Dive

1. Economic Sustainability Paper (Q1 2026)

Overview:
As part of Project King Safety, this paper will explain how Algorand plans to manage its long-term finances. It covers how transaction fees work, how validators (the network’s security providers) get rewarded, and how inflation is controlled. This builds on Algorand’s focus from July 2025 on core Web3 values like decentralization and making the protocol self-sufficient (Algorand Foundation).

What this means:
If done well, this could be very positive for ALGO by ensuring validators earn enough to keep the network secure and by reducing pressure to sell staking rewards. But if the plan is delayed or doesn’t address these issues effectively, concerns could grow, especially since ALGO’s price dropped 43% over the past 90 days.

2. AlgoKit 4.0 Launch (H1 2026)

Overview:
AlgoKit 4.0 is an upgraded set of tools for developers, including AI-powered code generation and support for popular programming languages like Rust, Swift, and Kotlin. It also offers ready-made smart contract templates. The goal is to attract both enterprise developers and those familiar with traditional (Web2) software development (Algorand Foundation).

What this means:
By making it easier to build on Algorand, this update could help grow the ecosystem and compete with other blockchains like Ethereum and Solana. Success will depend on how many developers start using these tools and how much value is locked in Algorand-based apps.

3. Rocca Wallet Full Release (H1 2026)

Overview:
Rocca Wallet is designed to be user-friendly by removing the need for complicated seed phrases. Instead, it uses biometric logins (like fingerprint or face recognition) and decentralized identity standards for security. A preview version launched in late 2025, with full integration expected by mid-2026 (Algorand Foundation).

What this means:
Making wallets easier to use could bring more everyday users into the Algorand ecosystem. However, success depends on effective marketing and partnerships. Currently, ALGO’s trading volume is low (about 2.7%), so increased wallet adoption might help boost liquidity and demand.

Conclusion

Algorand’s focus for 2026 is clear: improve economic sustainability, provide better tools for developers, and enhance user experience. These steps aim to move Algorand from just being a solid blockchain infrastructure to one that sees wider adoption. While the network has been technically reliable (with zero downtime since 2019), ALGO’s price has fallen 69% over the past year, showing that investors remain cautious. The big question is whether better tokenomics and easier usability can turn this around.

What updates are there in the ALGO code base?

Algorand’s software got major updates in the last quarter of 2025, focusing on faster performance, better tools for developers, and stronger security.

1. Dynamic Round Times & AVM v10 (2025) – Block times were cut to 2.8 seconds; new smart contract features added.
2. Security Patch: Crypto Library (Nov 20, 2025) – Important encryption library updated to fix vulnerabilities.
3. SDK Maintenance (Nov 21, 2025) – Minor fixes and code cleanups to improve stability.

Deep Dive

1. Dynamic Round Times & AVM v10 (2025)

What happened: Algorand updated its node software (version 3.21) to make block times flexible based on network conditions and introduced smarter contract tools.

Dynamic Round Time means the time between blocks adjusts automatically, speeding up the average block time by 18% to just 2.8 seconds without sacrificing decentralization. The Algorand Virtual Machine (AVM) version 10 added new features like:

• Box_splice and box_resize: These let developers easily update data stored on the blockchain, such as changing NFT details in one step.
• Pooled LogicSig budgets: This allows multiple transactions to share processing limits, reducing the chance of failed transaction batches.

Why it matters: Faster blocks mean Algorand can handle more transactions per second, which is great for decentralized finance (DeFi) and real-world asset (RWA) applications. Smarter contracts also make it easier for developers to build on Algorand. (Source)

2. Security Patch: Crypto Library (Nov 20, 2025)

What happened: The Algorand software development kit (SDK) updated a key encryption library (golang.org/x/crypto) from version 0.35.0 to 0.45.0 to fix security issues.

This update improves the safety of wallet signatures and communication between nodes by addressing:

• Rare edge cases in elliptic curve cryptography.
• Possible timing attacks during key exchanges.

Why it matters: This update is routine but important, especially for institutional users like central banks issuing digital currencies (CBDCs). It helps prevent potential security breaches. (Source)

3. SDK Maintenance (Nov 21, 2025)

What happened: Developers cleaned up the code by fixing typos and removing unnecessary parts.

Though small, these changes make the code easier to read and debug, which helps developers work more efficiently. Examples include:

• Correcting spelling errors in error messages.
• Removing redundant variables in transaction-building code.

Why it matters: While this doesn’t directly affect ALGO’s price or performance, it shows ongoing care for the platform’s health, encouraging long-term developer support. (Source)

Conclusion

Algorand’s recent updates focus on faster block times (2.8 seconds), smarter smart contracts, and strong security—key factors for supporting real-world assets and attracting institutional users. Although ALGO’s price has been volatile (down 37% over the past 60 days), these improvements strengthen the network’s foundation.

Could better developer tools help ALGO bounce back in the next altcoin season?

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