Algorand price slipped to $0.235 on Friday, dropping over 4% in a day and nearly 12% this week as panic selling hit the altcoin market. Trading activity spiked, with daily volumes surging 42% to $125.7 million, indicating the significant number of traders who rushed to exit their positions.
The sell-off dragged ALGO’s market cap down to $2.05 billion, pushing it to 48th place among cryptocurrencies. Much of the pressure came from a broader market shift, as Bitcoin’s dominance climbed past 57%, pulling liquidity out of mid-cap tokens like Algorand.
With investors also taking profits in Ethereum and other majors, ALGO was left exposed.
Algorand (ALGO) On-Chain Growth Lags
Ecosystem catalysts have done little to cushion the decline. The Algorand Foundation’s roadmap update highlighted a long-term push for institutional adoption and Web3 usability, while the preview of Rocca Wallet (Q4 2025) drew cautious optimism.
Yet, these milestones remain distant, and traders appear to have priced in their potential ahead of time.
Even the 100M USDC mint on Algorand, announced on August 13, failed to spur meaningful buying interest. On-chain data from DeFiLlama shows that the total value locked (TVL) rebounded 16.2% in 24 hours to $128.5 million, led by Folks Finance and Reti Pooling.
However, the stablecoin market cap on Algorand remains modest at $55.1 million. Analysts note that muted DeFi demand continues to limit the speculative upside of ALGO prices.
Algorand Price Struggles as Traders Brace for $0.22 Retest
Charts indicate that Algorand is at a decision point. The ALGO token broke below its 7-day SMA ($0.253) and 30-day SMA ($0.254), invalidating a short-term bullish setup. The MACD histogram turned negative (-0.00225), while the RSI (37.9) hovers near oversold territory.
On X/Twitter, community traders are closely mapping out Algorand’s next moves. BullishBanter pointed out that ALGO has tapped into the strong support zone at $0.239–$0.234, but warned that momentum would only flip bullish if the token can reclaim the $0.265 level.
That puts the mid-$0.26 range in focus as the key level short-term traders are fighting over.
Trader CW8900 also warned about heavy selling pressure sitting at $0.275, meaning even if ALGO bounces, gains could stall there unless buying volume really picks up. For now, that ceiling is the biggest hurdle for bulls trying to push a recovery.
Looking further ahead, analyst Michaël van de Poppe was more upbeat. He sees dips below the 20-week EMA as an opportunity to accumulate, calling today’s levels a smart entry point for long-term investors seeking a move toward $1.
In his view, the Algorand price remains poised for a potential run toward $1, even if near-term volatility shakes out weaker hands.
For now, ALGO’s short-term fate hinges on whether bulls can secure a sustained close above $0.245. Failure could trigger a deeper flush toward $0.22, while reclaiming $0.265 would revive momentum toward the $0.27–$0.28 band.
