American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Here’s why Algorand price could rise as its key data deteriorate

by admin April 23, 2025
April 23, 2025
Here’s why Algorand price could rise as its key data deteriorate

The Algorand price has crawled back in the past few days, mirroring the performance of other altcoins. ALGO token was trading at $0.213 on Wednesday, a few points above this month’s low of $0.1480. It remains 92% below its all-time high. This article explains why Algorand may rebound soon even as its fundamentals weaken.

Algorand has become a fallen angel and a ghost chain

Third-party data indicate that Algorand has become a ghost chain, as the number of developers and users on the network has declined over the past few years.

DeFi Llama data indicate that Algorand’s market share in the decentralized finance (DeFi) industry has been declining recently. 

The network has a total value locked (TVL) of over $109 million, a significant decline from its all-time high of over $395 million. While most chains have lost their TVL in the past few years, Algorand’s performance means that other newer chains like Base, Sonic, and Berachain have overtaken the network. 

The top players in the Algorand ecosystem are Lofty, Folks Finance, Reti Finance, and Vesta Equity.

More data shows that the DEX network in Algorand has little going on as the volume has continued moving downwards. DEX protocols in the network handled about $1.48 million in volume in the last 24 hours. In contrast, top chains like Ethereum, Solana, and Base handled billions in this period.

The stablecoin market cap in Algorand is also much smaller than that of other chains. It has risen to $140 million, up from its low of $132 million this week. 

Furthermore, Algorand has continued to liquidate its staking assets over the past few months. It has lost over 301 million ALGO tokens, or approximately $65 million, in the past 30 days. Its staking market cap has moved to $227 million, while the staking ratio has dropped to 12.5%.

Read more: IOTA’s Rebased upgrade to go live on May 5: can IOTA price soar 120%?

ALGO price technical analysis

The weekly chart shows that the price of Algorand has been in a strong downtrend in the past few months. It bottomed at $0.097, where it failed to move below several times since 2023. It has formed a double-bottom pattern whose neckline is at $0.6135. This pattern is a popular bullish sign.

If this pattern works out, Algorand price will likely rise and retest the neckline at $0.6135, which is about 190% above the current level. A drop below the double-bottom level of $0.09 will invalidate the bullish outlook.

Algorand weekly chart | Source: TradingView

Algorand price daily chart analysis

The daily chart indicates that the ALGO price has rebounded slightly over the past few days. This rebound happened after the coin completed the formation of the falling wedge chart pattern. A wedge is made up of two descending and converging lines that connect higher highs and lower lows. 

The widest part of the wedge pattern is about 60%. Therefore, measuring the same distance from the breakout point brings the next target level at $0.2880. 

Additionally, the Polkadot price has moved above the key resistance level at $0.1987, its highest swing point on May 28, and the upper side of the cup and handle pattern. Oscillators such as the Relative Strength Index (RSI) and Stochastics have all pointed upward. 

Algorand price daily chart | TradingView

The bottom line

Algorand’s fundamentals have deteriorated in the past few years, as it has lost market share in the cryptocurrency market. It has a small share in the decentralized finance and non-fungible tokens (NFT) industries. 

However, it has formed some encouraging technical patterns that may indicate further gains later this year. Historically, a cryptocurrency can surge even as its fundamentals worsen. 

The post Here’s why Algorand price could rise as its key data deteriorate appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Here’s why DeepBook, Dogecoin, Shiba Inu, Cardano, and altcoins are soaring
next post
BP shares rise after Elliott reveals 5% stake: here’s what it plans to do

Related Posts

Nio stock price has crashed: is it safe...

March 31, 2025

Canada Nickel Successfully Completes Initial Infill Drilling at...

February 21, 2024

Swiss franc, gold, and Bitcoin emerge as safe...

April 22, 2025

JEPI ETF stock scorecard for 2024 and what...

December 17, 2024

The bullish case for the First Solar stock...

October 22, 2024

Hang Seng Index has collapsed. Here’s why it...

April 8, 2025

NVDY ETF stock crashed: is it a better...

January 28, 2025

Major New LCT Pegmatite System Discovered at Mavis...

May 29, 2024

Culpeo Minerals

April 4, 2024

Wheels Up stock price on edge ahead of...

March 11, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Why Asia is quietly turning its back on US dollar

      May 11, 2025
    • President Trump floats 80% tariff on Chinese goods ahead of key trade talks

      May 11, 2025
    • UK’s Crown Estate clears offshore wind expansion to raise energy output

      May 11, 2025
    • What extended conflict between India and Pakistan could cost their economies

      May 11, 2025
    • CoreWeave eyes $1.5B bond raise to ease debt load following lacklustre IPO: report

      May 10, 2025

    Categories

    • Business (2,832)
    • Investing (2,377)
    • Latest News (1,984)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved