ALGO Eyes $0.60 as Bullish Pattern Breaks Out, Even as TVL Loses Its Shine

ALGO eyes a breakout to $0.60 as a falling wedge pattern confirms bullish strength despite recent short-term price weakness.

Support between $0.10 and $0.15 continues to anchor ALGO’s rally potential while technicals hint at a push toward $0.6139 resistance.

TVL loses traction as a performance metric with platforms shifting toward wallet activity, user flows, and value retention metrics.

Algorand’s price action reveals a technical setup that suggests a potential rally, even as market metrics shift focus. Currently trading at $0.2058, ALGO shows a 3.16% decline over recent sessions. Despite short-term dips, the broader structure signals bullish momentum. A long-standing falling wedge pattern, stretching from November 2024 to August 2025, is central to this analysis.

Source: Lucky

The first breakout appeared near $0.15 in December 2024. Following weeks of consolidation, another breakout occurred in April 2025 around the $0.20 level. Both events confirm the classic bullish pattern. Price volatility decreased steadily before this breakout, as trendlines tightened in March. Volume patterns also supported these upward movements. Consequently, ALGO now trades near the upper boundary of its historical range.

Key Resistance and Demand Levels

Support near $0.2008 continues to hold firm. Price has respected the underlying demand zone between $0.10 and $0.15 for months. Each touch of this zone triggered recovery attempts. Additionally, technical projections indicate a potential target around $0.6000. Resistance at $0.6139 marks a significant hurdle. However, the pattern suggests enough strength for a sustained push higher.

Besides technicals, market sentiment is also evolving. New research from the Algorand Foundation disrupts traditional DeFi metrics. Their Chief Economist, Dr. Matt Brigida, led a study on Total Value Locked (TVL). The goal was to determine if TVL predicts token performance across more than 300 cryptocurrencies.

TVL Losing Predictive Relevance

The results were surprising. TVL-based portfolios failed to generate meaningful excess returns. Even after using cleaned data and adjusting for market movement, no alpha appeared. Hence, TVL may no longer be a reliable performance metric.

Moreover, many platforms now favor broader indicators. Metrics like wallet activity, capital retention, and transaction flow offer deeper insights. Messari, Artemis, and Token Terminal now treat TVL as supplemental. Additionally, analytics tools like Dune and L2BEAT adopt wider metrics like Total Value Secured (TVS). Nansen combines TVL with smart money activity for context. Similarly, Flipside Crypto emphasizes user-driven value creation.

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