Algorand: A detour may be on the cards for ALGO thanks to these findings

Cryptocurrency

Algorand: A detour may be on the cards for ALGO thanks to these findings – Crypto News

Published

3 years ago

July 14, 2023

Dripp

Multiple signals point towards a possible shift in guard in favor of the bulls.
ALGO maintains healthy address growth despite falling prices.

Algorand [ALGO] The bulls can’t seem to catch a break as liquidity continues to bleed out of the cryptocurrency. But is there any end in sight for this bearish assault? Recent data suggested that a bullish relief might be on the cards for ALGO.

How many are 1,10,100 ALGOs worth today

ALGO attempted multiple bullish recovery attempts over the last few months. Unfortunately, each attempt was shot down. This has been the case with its performance since the beginning of July. To put its bearish performance into perspective, it fell as low as $0.091 in June. This was its lowest recorded price in history.

ALGO bottomed out at $0.10 in the last 24 hours. This represents the lowest price point so far this month. This downside pushed its Relative Strength Index (RSI) and Money Flow Index (MFI) near the oversold zone.

Source: TradingView

The fact that the price registered a sizable uptick was the first sign that there has been some accumulation. It traded at 0.11 at press time after an 8% uptick at the time of writing. This slight uptick was not the only reason for bullish optimism.

On-chain data confirms a build-up of bullish momentum

We observed a spike in Algorand’s social dominance in the last 24 hours during which it soared to its highest level in the last four weeks. In addition, ALGO’s weighted sentiment metric has been rising despite the falling prices. This metrics combination indicated that the cryptocurrency has been receiving more attention.

ALGO weighted sentiment and social dominance

Source: Santiment

More attention and a bullish sentiment were bound to trigger enough demand for a pivot. Especially after the downside that ALGO experienced. More visibility at lower price levels tends to support bullish volumes.

Unsurprisingly, the cryptocurrency’s volume has been gradually building up in the last few days. It registered its highest four-week levels in the last 24 hours.

Source: Santiment

While the rising volume and sentiment pointed to an improving outlook, there was one major observation that backed the probability of a strong pivot. The Algorand network maintained strong positive address growth in the last 30 days. This is despite reports that it will shut down its largest DeFi protocol,

Source: metrics.algorand.org

Algorand’s address growth confirmed that the network was still on the right trajectory even though ALGO’s price action suggested otherwise. However, price action is not always an accurate representation of the underlying network’s performance.

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The recent pivot also reflected the overall market’s performance. Crypto bulls received a healthy boost in the last 24 hours courtesy of a favorable ruling in the long-running legal battle between Ripple and the SEC,