Connect with us
Active Currencies 14309
Market Cap $2,526,281,184,297.30
Bitcoin Share 51.77%
24h Market Cap Change $0.44

Algorand: Bearish overload keeps ALGO near this price level

2min Read

ALGO’s bearish market structure saw the altcoin sink to another all-time low before making a brief recovery. However, there could be another price dump on the way.

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • ALGO hovered around an all-time low with sellers dominating the price action.
  • Funding rates fluctuated to highlight indifference in the derivatives market.

Algorand’s [ALGO] bearish market structure saw the altcoin sink to another all-time low before making a brief recovery. The 18% price drop on 19 August saw ALGO hit $0.082 before rebounding to trade at $0.097, as of press time.


Realistic or not, here’s ALGO’s market cap in BTC terms


Despite the brief price rebound, the selling pressure was still very much present. This could see ALGO set a new all-time low in the coming days. Meanwhile, Bitcoin [BTC] continued to trade at $26k as the bearish market sentiment persisted.

Will the trend of ATLs ease?

Algorand ALGO price chart on dark background

Source: ALGO/USDT on Trading View

ALGO’s bearish momentum saw it hit a series of all-time lows (ATLs) over the past three months. It hit the first ATL on 10 June and the most recent on 17 August. Despite the bullish attempt at a rebound, ALGO crumbled under the weight of intense selling pressure.

While the $0.09 support has served to ease the selling pressure, the on-chart indicators highlighted the possibility of the level being broken soon.

The Relative Strength Index (RSI) climbed out of the oversold zone but still remained firmly under the neutral 50. This revealed the lack of buying pressure for ALGO. Similarly, the Chaikin Money Flow (CMF) hovered just above the zero mark. This highlighted investors’ hesitation about a price rebound.

A break below the critical support of $0.09 would see shorts target the $0.05 – $0.07 price level, marking another new low for ALGO. However, if bulls defend the current support level, buyers can look to book profits at $0.12 – $0.14.

Mixed signals in the derivatives market

Source: Coinalyze

According to Coinalyze, ALGO’s Funding Rate ranged between negative and positive over the past week. This showed the lack of conviction among market speculators on a clear reversal.


How much is 1,10,100 ALGOs worth today?


Although the Open Interest (OI) saw a 7.27% rise over the past day, this could be taken as an attempt by sellers to drive the price below the support level. This was due to the lack of price increase along with the increase in open interest. This highlighted the possibility of another price dump in the long term.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.