This week poses significant challenges for cryptocurrency investors as several altcoins linger around key support levels. Some digital currencies have already lost critical levels necessary for short-term bullish trends. Others await heightened volatility. What does the future hold for Algorand (ALGO)? What should investors anticipate?
Current State of Algorand (ALGO)
As the month commenced, ALGO was priced at approximately $0.18, but it plummeted to $0.15 yesterday, setting a new monthly low. In March, this popular cryptocurrency surged to $0.31. Does this mean that a bullish outlook is now implausible?
Analyzing the order books on various exchanges provides an insightful overview. Data from IntoTheBlock highlights that investors have placed buy orders for 54 million ALGO tokens. Despite over $8 million worth of buy orders, the sell orders surpass this with 80.2 million tokens, totaling $12.8 million.
How Is ALGO’s Price Predicted?
Santiment’s data, which measures investor sentiment, shows a predominantly negative attitude. This sentiment, coupled with the robust sell order block, suggests that any upward momentum is weak. It indicates a likely revisit to the $0.16 mark, driven by pessimistic investor outlook.
The ALGO Coin purchase cost table reveals a resistance wall of 2.68 billion tokens at $0.19, signifying that this level could reinforce further. If the price drops below $0.16, it might decline further to $0.14.
What Are Key Takeaways for Investors?
Despite the prevailing negative sentiment, there are some positive indicators from the Algorand network activity:
- Increased number of active addresses.
- Growth in wallets holding a non-zero balance.
- Potential rise in demand if network activity continues to strengthen.
Conclusion
The pivotal level for ALGO remains at $0.16. Any major market activity will hinge on this point. Depending on price movements, trading activity could concentrate between $0.14 and $0.12 or potentially above $0.18. Positive reports from the Federal Reserve could instigate another attempt to reach $0.18 or even $0.31.