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Algorand (ALGO) Analysis: When Will The Price Finally Recover?



 Without a doubt, Algorand investors took huge losses in this bear market. In November alone, the price suffered a painful 50% setback. But since the summer of 2019, the price development of the cryptocurrency has not been good. Is there still hope for investors?


Algorand (ALGO) price action has been overwhelmingly depressing for investors. Since its all-time high of $3.24 in June 2019, ALGO's price has plummeted over 92%.


In fact, Algorand was one of the few coins that seemed to ignore the year-end 2021 bull market and failed to make a new all-time high. With the current price hovering around $0.244, ALGO investors are desperate for a redeeming rally . 


Algorand social metrics remain bearish 

Although Algorand generated some hype on crypto Twitter with its ongoing Decipher event, the social metrics showed no major changes. ALGO's social volume has been falling since November 22nd. 

Currently, Algorand is attempting to hold the long-term support level of $0.245. However, according to Santiment.net, the Weighted Sentiment indicator suggests little interest from ALGO investors . Worse still , it even moved into negative territory, which can be interpreted as lower demand in the derivatives market .


Open interest also barely increased, although funding rates are positive. 

On the perpetual market, open interest stood at about $23.9 million, down 1.24% from the previous day . Given this lack of interest in ALGO, the only hope for a price rally lay with investors in the spot market. 


Is a price recovery in sight in 2023

However, over the past 30 days, the number of ALGO investors fell by over 5%, while retailers saw a 1.83% gain. The number of whales remained unchanged.

To get the asset's price back into an uptrend, investors would need to buy aggressively at current levels. 


ALGO was last observed at such a price level in November 2020, which would actually be a good reason for investors to invest or accumulate now . Despite the low prices, there is currently no sign of a major increase in trading volume. 

On the other hand, the strong increase in development activities is positive. Progress of the project itself could increase investor confidence . As a result, increased demand and an associated price increase would be conceivable.


For now, the price has at least managed to rally to the $0.244 support level , but if it fails to hold, expect a retest of the $0.20 lower zone. In case of a positive trend reversal, ALGO could target the next resistance level at $0.30.


DISCLAIMER

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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