Algorand price remained under pressure and moved to its lowest level since July as the crypto market retreated. ALGO token was trading at $0.1840, down by over 47% from its highest point in July this year. So, is ALGO a buy as transactions jump?
Algorand Transactions are Soaring
ALGO price has retreated in the past few days, mirroring the performance of the crypto market. This crash happened even as the network showed some substantial growth in the paast few months.
A report released this week showed that the number of on-chain asset creation jumped by 30% to 26,800 in September this year. Most notably, the number of open-source developers jumped to record high of 390, a sign that it is growing in adoption.
Meanwhile, data shared by Nansen shows that more people are interacting with Nansen. Transactions rose by 32% in the last 30 days to 24.32 million, while active addresses hit 375,000.
Still, the biggest challenge facing Algorand is that most major developers in the crypto industry are not using it. This includes top protocols like Aave and Uniswap. As a result, the total vlue locked (TVL) in its DeFi network has dropped to $124 million from the year-to-date high of $325 million.
The amount of stablecoins n the network has also moved downwards. It stands at $44 million, down from $165 million earlier this year. This retreat is notable because it signals that Algorand s not benefiting from the GENIUS Act.
Algorand Price Technical Analysis
ALGO price chart | Source: TradingView
The daily timeframe chart shows that the Algorand price has pulled back in the past few weeks. It moved from a high of $0.3383 in July to the current $0.1830.
Algorand price has moved below the 50-day Exponential Moving Average (EMA). Moving below that level is a sign that bears are in control for now.
The Percentage Price Oscillator (PPO) and the True Strength Index (TSSI) has moved below zero. Also, the Relative Strength Index (RSI) has moved below the neutral point at 50.
Therefore, the most likely scenario is where the ALGO price continues falling as sellers target the year-to-date low of $0.1483, its lowest level iin April this year. A move above the 100-day EMA at $0.2223 will invalidate the bearish outlook.
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