Algorand Stuck At Bearish Price Level – Can Bulls Reverse Path?

Christian Encila

1 year ago

3 mins read

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Algorand native token, ALGO, has experienced a dramatic plunge in the wake of the recent crash in the cryptocurrency market. On August 19, the token’s value plummeted by a staggering 18%, hitting a low of $0.082.

While ALGO subsequently rebounded slightly, currently trading at $0.097 according to CoinGecko, the prevailing sentiment suggests that the selling pressure is something investors must keep an eye on. The 24-hour gains have been a mere 0.9%, and over the span of the past week, ALGO has suffered a 5.3% decline.

ALGO price action today. Source: Coingecko

Algorand Challenges Amidst Brief Rebound

Despite the transient recovery in prices, the persistent selling pressure continues to cast a shadow over ALGO’s future prospects. The potential consequence of this is the looming possibility of ALGO establishing a new all-time low in the days to come.

This setback is compounded by a development earlier in the year when the US Securities and Exchange Commission designated ALGO as a security. This action was made as the SEC unleashed regulatory measures against the US-based crypto exchange, Bittrex.

The reclassification of ALGO has set in motion a cascade of ramifications, affecting both the token itself and its holders in terms of financial regulations.

Regulatory Uncertainty And Value Erosion

In spite of vigorous resistance from its Foundation, ALGO’s demand has experienced a decline. The overarching reason behind this decline lies in the hesitancy of investors towards assets entangled in regulatory ambiguity. Consequently, the value of the token has witnessed a staggering decline of over 87% since the SEC’s classification.

ALGO hits a market cap of $765 million today. Chart: TradingView.com

Over the past three months, ALGO has endured a series of successive all-time lows (ATLs). The downward spiral began on June 10, culminating in the most recent ATL on August 17. The token’s efforts to stage a bullish rebound were quashed by the overwhelming weight of relentless selling pressure.

Critical Support And Prospective Scenarios

Meanwhile, the pivotal $0.09 support level has managed to alleviate some of the selling pressure, although indicators on the trading charts raise concerns about its sustainability.

Should the critical support of $0.09 crumble under the pressure, it opens the gates for short sellers to target the price range of $0.05 to $0.07, potentially setting another unfortunate precedent of a new low for ALGO.

ALGO seven-day price movement. Source: CoinMarketCap

However, if the current support level holds, prospective buyers can anticipate opportunities to secure profits within the range of $0.12 to $0.14.

As ALGO navigates through these tumultuous waters, market observers are keenly watching how it will weather the storm. The complex interplay of regulatory challenges and market sentiment will undoubtedly shape the trajectory of this token in the days ahead.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Just Ride

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.