Algorand [ALGO] Registers an Increase in TVL, but Concerns Still Remain

Algorand [ALGO] made headlines for its most recent accomplishment. According to DeFiLlama, Algorand’s total value locked (TVL) increased by 137% in a single year. Algorand was now within 18% of its previous all-time high, thanks to this new development.

Not only has the TVL increased, but Algorand’s total addresses have also increased in the last seven days, according to AlgoExplorer. This, too, was a positive report, indicating a greater number of users on the network.

Furthermore, FLUX, one of the largest web3 decentralised computing networks, revealed that Algorand will be its parallel asset that will be deployed on its interchain operable platform.

ALGO’s price performance over the last week was likewise positive, with its chart tinted green. According to CoinMarketCap, ALGO’s price has increased by more than 12% in the last week, and it was trading at $0.2323 with a market value of more than $1.6 billion at the time of writing.

However, the good times may be coming to an end, as a number of market indications were unfavourable for ALGO. The Relative Strength Index (RSI) fell when it was in the overbought zone, indicating a negative indication. The Chaikin Money Flow (CMF) and On Balance Volume (OBV) both fell somewhat, raising the likelihood of a trend reversal.

Interestingly, ALGO’s popularity has declined in the previous week as its social dominance has declined. While popularity fell, negative opinions toward ALGO rose, which was alarming because it suggested a lack of community trust in ALGO.

Despite the drawbacks, a few metrics favoured ALGO, offering much-needed hope for a prolonged climb. ALGO, for example, was in strong demand in the futures market since its Binance financing rate stayed consistently high. Development activity has also grown in the recent week, which is a good indicator for the network.