Algorand Stuck At Bearish Price Level – Can Bulls Reverse Path?
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 Related Reading:
Optimism Reverses From Range Low With 10% Gain – How Far Can Bulls
Go? 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
Historical Stock Chart
From Jan 2024 to Feb 2024
Historical Stock Chart
From Feb 2023 to Feb 2024