The Algorand price is sitting at an important support level as investors remain concerned about the cryptocurrency sector. ALGO, its native token, is trading at $1.2790, which is about 57% below the highest level on November 18th. It is hovering near its lowest level in September.
Algorand has been under pressure recently. This price action is mostly because of the ongoing weakness of the cryptocurrency sector. Analysts are simply worried about the Federal Reserve and the fact that the easy-money policy is ending. This also explains why the tech-heavy Nasdaq 100 index has moved to a correction zone.
Another important reason why the Algorand price has struggled is the fact that investors are afraid about the decentralized apps built using its network. DappRadar lists only three apps that have been build in the network. They are Yieldly, Tinyman, and Algofi.
At the same time, DeFi Llama shows that there is no DeFi apps built using the network. This is a notable thing since Algorand is mostly a platform for the financial industry. Therefore, it will find it difficult to compete with the likes of Ethereum and Solana.
The daily chart shows that the Algorand price has been under intense pressure in the past few weeks. The coin managed to decline below the key support level at $1.5225, which was the lowest level in October. It has moved below the 25-day and 50-day exponential moving averages while the MACD has moved below the neutral level.
Therefore, since the ALGO price is at a key support, a move below this level will send a signal that bears are prevailing. As such, this will lead to further weakness as bears target the key support at $1, which is about 22% below the current level.
This post was last modified on %s = human-readable time difference 06:59