When a cryptocurrency makes a name for itself in the market, it is usually because of the positive price action. Algorand seems to have defied that story, however.

Instead of making the investors optimistic, ALGO has kept them in losses. On closer inspection, ALGO’s journey to the south is not yet over.

Algorand loves to tumble

The altcoin has been dropping in the charts since September. Unlike other cryptocurrencies, ALGO failed to bounce back in November and instead consolidated.

When December and January came, the currency was deep in losses. In fact, the broader market events in those two months only made things worse for Algorand. At the time of this report, it was 68% below ATH.

Algorand is trading at $0.76 and it looks like he is preparing to disappoint his investors even more. Given the price action, all indicators are pointing towards more red candles.

The white dots of the Parabolic SAR are about to reverse their position to stay above the candles. ADX’s rising strength is supporting the downtrend as it is about to break through 25.0.

Algorand Price Promotion | Source: TradingView – AMBCrypto

In addition, the fact that Algorand is in an active bearish squeeze already indicates a price decline.

This could lead to Algorand reaching its next critical support of $0.68, which is 11.36% below the current price level.

In addition, investor behavior and network data are also unimpressive at the moment.

The transaction volume on-chain has fallen drastically. Most investors are currently not motivated to be active as they see no chance of recovery. And this cohort isn’t small either.

Algorand transaction volumes | Source: Intotheblock – AMBCrypto

99% of all ALGO investors, who have ever made a profit, face losses at the current price level. This translates into a loss of 10.1 million ALGO holders. So it makes sense why on-chain activity has been significantly reduced.

Algorand investors at a loss | Source: Intotheblock – AMBCrypto

This is also reflected on the DeFi front, where the lending protocol has fallen from $19.44 billion to just $11.63 in five months.

With 88.6% of investors in loss, it won’t be surprising to see them inactive in the coming days-weeks as prices fall again.



This post Falling another 11% along the way? Should ALGO investors leave the market?

was published first on https://ambcrypto.com/another-11-fall-on-the-way-should-algo-investors-exit-the-market/

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