Algorand (ALGO), like many other altcoins, took a hit during this week’s crypto market turmoil. ALGO’s native token dropped almost 10% as Bitcoin slumped below $25,000 and Ethereum dropped below $1,600. Accordingly, it dropped to an all-time low of $0.09. So is this drop a buying opportunity? Let’s look at the details
The long road for Altcoin Algorand
As the crypto community is watching closely, ALGO bulls are trying to regain the $0.1 level. But tough selling pressure continues to look huge. According to CoinMarketCap data, Algorand’s trading volume has decreased by 34% in the last 24 hours. Accordingly, it decreased to approximately 23.6 million dollars. On the other hand, with a market value of 756 million dollars, it stands far from its glorious days.
Altcoin Algorand once peaked on June 20, 2019, when its price hit a record high of $3.56. At the time, the launch of the Layer-1 blockchain was met with widespread optimism and enthusiasm about its potential. It was a nice development for Algorand to gain recognition in mainstream circles. The fact that it secured numerous partnerships and carried out significant network upgrades were positive indicators for the project. However, there has been a steady decline in price over the past few years. Altcoin ALGO dropped from its 2021 peak of $2.80 during the crypto bull market.
Regulatory issues and changing perspectives
In recent months, the price of altcoin ALGO has been heavily influenced by negative sentiment from the Chairman of the US Securities and Exchange Commission (SEC). The SEC has selected Algorand as one of the unregistered securities in lawsuits against major exchanges such as Bittrex and Binance. This development accelerated the downward trend of the token.
Interestingly, SEC Chairman Gary Gensler once applauded Algorand for its blockchain potential. However, it seems that the regulatory environment has improved, causing a change in perspective. When we look at Kriptokoin.com, the market is on its way between these difficulties.
Buying opportunity?
Altcoin ALGO is expected to withstand more downside pressure, although it has signaled a potential recovery from time to time. Currently, sellers are firmly in control, with the Relative Strength Index (RSI) settling deep into the oversold territory.
In this scenario, profit taking is likely to continue before the upside path becomes clear. Accordingly, the ALGO price point does not seem to offer a buying opportunity for now.
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