Algorand, a noteworthy altcoin, has seen an uptick in value recently. Despite this, the majority of Algorand (ALGO) investors are facing disappointments, as the rise has not been substantial enough to offset past losses. The pattern of Algorand’s value movement presents two predominant outcomes: an initial rise followed by a fall and then a final surge or an adjustment before climbing back to prior high points.
Current State of Algorand Market
Since its peak after the June 2019 launch, Algorand has grappled to reach its former glory, with the current trading price significantly lower than its all-time high (ATH) of $3.27, now hovering around $0.31. The currency would need a staggering 926% surge to revisit its ATH. A vast majority of ALGO holders, making up 85% of investors, bought their assets at prices nearing 20% of the ATH and now face a prolonged wait for returns.
Investor Profitability Statistics
Currently, only a small fraction of ALGO investors, about 20.6%, are in the black, which is only a slight improvement over a 12-day period. Despite a 71% rally, this increase in profitability is marginal, highlighting a scant 2.1% rise in total profits. The data suggests most ALGO holders purchased the asset at higher prices, making their chances of achieving profits slim unless the coin’s value significantly increases again.
Although the price of Algorand has appreciated, the majority of investors are yet to see profitable returns. This lack of profitability could potentially be advantageous as it may limit selling pressure from profit-taking, providing ALGO with an opportunity to maintain its upward trajectory. The altcoin is on the verge of breaking a resistance level, which could lead to further gains.
Nevertheless, the market still faces the risk of sell-offs impacting the cryptocurrency‘s value. If ALGO is unable to break through resistance levels, it risks descending to lower support levels, which could undermine the currently optimistic outlook.