Another 11% fall on the way? Should ALGO investors exit the market
When a cryptocurrency makes a name for itself in the market, it is because of the positive price action usually. However, Algorand seems to have defied that narrative.
Instead of making the investors optimistic, ALGO has kept them down in losses. On closer inspection, it appears that ALGO’s journey to the south is not over yet.
The altcoin has been slipping on the charts since September. Unlike other cryptocurrencies, ALGO failed to rally back in November and instead consolidated.
As December and January came, the coin was deep down in losses. In fact, the broader market events in those two months only made it worse for Algorand. At the time of this report, it was 68% below ATH.
Trading at $0.76, it seems, Algorand is actually preparing to disappoint its investors even more. Considering the price action, all indicators are pointing towards more red candles.
The white dots of the Parabolic SAR is on the verge of flipping their position to stay above the candles. The rising strength of ADX is supporting the downtrend since it is on the verge of breaching 25.0.
Algorand Price Action | Source: TradingView – AMBCrypto
Furthermore, Algorand being in an active bearish squeeze is already hinting towards a price drop.
This could lead Algorand to hit its next critical support of $0.68, which stands 11.36% below the current price level.
Furthermore, investors’ behavior and network data are also unimpressive at the moment.
Transaction volume on-chain has come down drastically. Most investors have no motivation to be active right now since they are not witnessing any opportunity for a recovery. And, this cohort isn’t small either.
Algorand transaction volumes | Source: Intotheblock – AMBCrypto
99% of all ALGO investors, who enjoyed profit
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