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ALGO Still Down 88% from ATH Despite Recent 480% Hike – What’s Next?
Algorand (ALGO) has been witnessing a tumultuous ride, with its recent surge of 480% only to be met with another decline. As a result, the cryptocurrency is still down 88% from its all-time high (ATH). The question on everyone’s mind now is: what’s next for ALGO?
In terms of market structure, Algorand has been displaying a bearish setup since December 9th, with its daily chart turning red. This suggests that any further losses may be likely in the short-term. Furthermore, both volume indicators – CMF (Chikou Money Flow) and A/D (Average Directional Index) – have been trending south, indicating decreased capital inflows into the market.
Moreover, it’s essential to recognize the significant drop-off in Algorand’s Open Interest as well as its spot CVD (Cryptocurrency Volume Delta), suggesting a decrease in trading volume. The 50% level at $0.36 has already been tested as support, and it may not be too surprising if we see further retracement towards $0.3 or even $0.2145.
In the face of this downturn, Algorand’s weighted sentiment has seen a significant drop-off over the past two weeks, with developers’ activity also halting since December 10th. This can be attributed to the holiday season, but it is crucial to keep in mind that such an anomaly did not occur in recent years.
It remains to be seen how ALGO will move forward; however, one thing is for certain – we must continue to monitor its chart closely and stay alert of any changes in market sentiment.
Source: ambcrypto.com
