Algorand: Exploring the silver lining in the 30% crash in ALGO price

Algorand, a crypto token that was once a favourite of investors and traders across the world has not been performing as well of late. Ever since the month of June 2022 – the coin has remained stuck within a very narrow range and only managed to provide a breakout in the early days of November before quickly come crashing down post amid the FTX crypto exchange collapse fiasco.

ALGO price, as we can see from the chart above, has been beaten badly in the recent crash led by the FTX collapse. Since the end of September, all through October to the beginning of November, ALGO had been on a slow yet steady uptrend on the charts. ALGO had even broken out of the 50 and the 200 day moving averages on the chart, and was also able to convincingly break out of the upper trendline resistance (marked in blue), rallying over 50% from the lows. But the latest crash has pushed prices back down below the YTD lows for the token, which could spell trouble for the crypto.

Summarizing from the observations from the technical analysis point of view, ALGO price is at a very precarious position right now, trading just around the last surviving support level – a breakdown below which could be devastating. However, on the other hand, signals of accumulation from big time HODLers derived from on-chain metrics indicate that a strong accumulation is underway, despite the poor price action. Thus, ALGO is definitely a coin that investors need to keep an eye out for as the current bearish scene could quickly change for the better.

Also Read: Algorand: Exploring the silver lining in the 30% crash in ALGO price