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Algorand (ALGO) Looks Bearish: Could Bulls Defied The Selloff?

  • Algorand coin trades in the downward region and was below the 20 day EMA mark.
  • Its on-chain metrics reflect bearishness and suggest further down move is intact.

The Algorand (ALGO) coin was traded under bearish influence and continued to drop. Last week, it reached its 52 week lows around $0.1100 and guided a negative sentiment among its investors.

Despite multiple attempts of bulls to break and close the 20 day EMA, sellers secured the cluster and defeated the bulls which led the follow on decline for the past sessions.

Still, the ALGO coin trades below the significant moving averages and sails in the bearish course. Until it did not reclaim the $0.1800, the bear cartel continued to dominate and it would resume the underperformance.

At press time, Algorand coin was trading at $0.142 with an intraday surge of 3.24%, reflecting neutrality on the chart. It has a monthly return ratio of -14.30% and 30.20% yearly, reflecting short term retracement.

The pair of ALGO/BTC is at 0.00000242 BTC, and the market cap is $1.17 Billion. Analysts are bearish and suggest that ALGO may continue to drop and underperform.

Has Algorand (ALGO) Bottomed Out?

For the past four months, Algorand coin displayed bearish influence and dropped over 60% of gains from its high of $0.3200 and reached the bottom mark of $0.1100 this week.

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Amidst the strong downfall, the coin still did not cross the 20 day EMA and struggled below it.

The RSI curve was around the midline region at 45, reflecting a positive crossover and a bounce on the chart.

Notably, the coin was ranked at 69 and has a total supply value of 8.22 billion. Meanwhile, the fully diluted market cap is $1.42 Billion.

@JT Media in a tweet mentioned that ALGO inflation rate is now at 3.61% and it needs a catalyst to overcome the distribution.

Meanwhile, the coin is in the oversold trajectory and has corrected from the highs, which conveys that the probability of a bounce was higher than a selloff.

Social Insights Still Looks Negative 

The Social Volume data witnessed no significant changes and was still below the averages, noted at 37, reflecting a decline in investor interest on the social media platforms.

Social Volume Data   Source: Santiment

Meanwhile, the weighted sentiment data stays in the negative trajectory, noted at -0.168, revealing that its holders have lost interest.

Daily Active Addresses Data Noted a Dip

Algo
Daily Active Addresses     Source: IntoTheBlock

In the last seven trading sessions, around 23% of active addresses have lost their interest in the coin, while only 6% new addresses were added.

Majority In Red

Algo
GIOM Indicator Chart   Source: IntoTheBlock

Per the GIOM indicator, only 5% of in-the-money holders are in profit, and more than 92% of holders are still sitting on unrealized losses.

As majority of the addresses were in the red, it might lead to follow on selling pressure ahead and further panic sell off could be seen ahead.

Total Liquidations Chart Favors Bears

Algo
Source: coinglass

At the time of writing, the short liquidations were at $2.74k, while the long liquidations were at $5.76k, implying the bearish outlook. 

The immediate support levels for Algoran coin are $1.80 and $1.30, whereas the key upside hurdle is around $2.40, followed by $3.

ALGO was under the 20 day EMAt, signifying a lack of buying momentum on the chart. Trading in the negative territory, the bears have persisted in adding short positions, putting pressure on the bulls.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Ritika Sharma
Ritika Sharma
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.