Algorand Price Prediction-Is Recovery Possible After a 34% Drop?

Algorand’s price has reportedly seen a big decline is a retracement of 34% from $0.61 to $0.40. The decline was, however, witnessed after the emergence of Bitcoin (BTC), which overpowered the cryptocurrency market, thus reducing the market pushes for altcoins. ALGO has reached the demand zone that costs $0.40. However, the concerns arise: can altcoin bounce back on the back of such weak market demand?

Algorand Price Stabilizes at $0.40: Will Recovery Follow?

Algorand’s price has a previous support area at $0.40, which has acted as an important level in the past. As TradingView data shows, the same area also corresponds to a price overshoot that occurred in late November. Though Algorand’s price has been trading at this level in the early December bear run, the altcoin has seen some form of rejection every time it tried to rally.

An upper channel range rejection at $0.43 after other failures also points to minimal market interest. A measure of the strength of this demand compared to other stocks in the index, the Relative Strength Index (RSI) is still below average. Furthermore, Chaikin Money Flow (CMF)makes it clear that the capital inflows in December have been rising below zero levels in the past.

“ALGO has weak demand to counteract that which is affecting its recovery, and without significant capital inflows, it may be hard to ease through the resistance levels,” said a CryptoMetrics market analyst.

This downtrend saw Algorand’s price lose the $0.70 level it has used as support since January/February to dip toward the $0.40 vicinity, close to its March 2024 high of $0.33.

SuperTrend Indicator Signals Ongoing Sell Pressure

On the 4-hour chart, the SuperTrend indicator remains below the zero line for the Algorand price, which gave a sell signal on December 9. This hints that to some extent, shorting the altcoin could still be more profitable than going long in existing market conditions.

In fact, spot market data also supports this bearish outlook. The Cumulative Volume Delta (CVD) stays range bound, which also means that there isn’t a lot of demand for the stock.

Allowing for no more than marginal advances over the next few days, Palmer continued that “unless there is a notable change in the sentiment or emerging buying pressure across the market, ALGO has little-to-no prospects of seeing a bounce.”

Any violation of $0.40 must be observed closely for short position traders as it signifies a strong resistance level. On the other hand, a background of a powerful rebound starting from $0.40 or $0.33 could signal a reversal, but only on the condition that there would be a series of intensive buying associated with the price rising above $0.43.

Algorand Price Forecasted in 2024-2025 

Earnings on ALGO in the future will depend on the market situation and the ecosystem’s further evolution. Algorand uses one of the most efficient blockchains for transaction throughput which has helped it attract investors in decentralized finance and institutional space.

Nevertheless, the current technical positions point to a more careful orientation. The $0.40 level will continue to be of investment interest over the coming weeks. If ALGO can make a successful rebound, then it has the possibility of revisiting the $0.43 to $0.50 price mark. On the downside, failure to hold $0.40 could take price down to $0.33 or below.

Advertisement Banner

Traders and investors should also keep their eyes on Bitcoins’ domination because it still affects altcoins’ performance. In the past, when BTC dominance declined, the altcoins tended to surge, and hence, it would be favourable for ALGO.

Conclusion: Can ALGO Bounce Back?

Algorand price, which is presently on a 34% price decline, is currently in a precarious position. The demand zone at $0.40 can be used as the level from which the reversal might occur, yet the main resigned and bearish technical signals warn against that.

Specifically, broader factors that are likely to detrend this tide in ALGO include rising capital across the border, better market conditions and a decisive cross above the $0.43 level. In the short term, traders may prefer short selling, especially if the $0.40 support level is given out.

The durability of this recovery will largely depend on other market variables and the increased usage of Algorand’s infrastructure. Once again, traders are warned to do their homework and keep abreast of the market conditions. Keep following The Bit Journal for the latest crypto updates on Algorand price.

FAQs

1. What is the forecast Algorand price today?

After a 34% slump, ALGO has reached the $0,40 area, a crucial support level. Recovery will eventually be seeded by increasing demand and a breakout above $0.43 level on the charts.

2. Why did ALGO go down in price recently?

On a proximal basis, ALGO was most compassed by a shift in market share that substantially altered the pace of altcoins.

3. Is $0.40 a good flooring for ALGO?

$0.40 in the remainder of the table has always acted as the strong demand area. However, this low demand and the bearish technical indicators pose a big question to the reliability of this forecast in the current market climate.

4. Should I buy ALGO now?

Purchasing of ALGO at this decent stage is also associated with some risks in view of low demand and the absence of a bullish mood. Information traders should be likely to look for indicators like a sharp rebound in price from the $0.40 level and improved market condition before engaging in positions.

5. What does Algorand’s price hold in the future?

In more detail, the blockchain that Algorand Price has successfully developed and deployed is quite promising since the protocol can scale effortlessly while being environmentally friendly. However, its price performance in the long term will depend on the general market price and usage of its technology.

Follow us on Twitter and LinkedIn and join our Telegram channel to be instantly informed about breaking news!