Algorand price remained under intense pressure this week as the crypto market crashed following the Federal Reserve’s interest rate decision. ALGO token crashed to a low of $0.1753, down 50% from its July high.
ALGO Price Crashed Despite a Surge in Transactions
Algorand has plunged even as the network growth has accelerated in the past few months. Data compiled by Nansen shows that the network’s transaction volume jumped 88% over the last 30 days to 35.8 million.
Notably, Algorand was the fastest-growing network over the last seven days, with transactions soaring 157% to 15.9 million.
More people are using Algorand as the number of active addresses rose by 31% in the last 30 days to over 360,960. Additionally, the network generated nearly $17,000 in fees over the last 30 days.
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These numbers show that Algorand’s network continues to see traction among users despite having major challenges, such as losing its FIFA network to Avalanche a few months ago.
Algorand has lost market share in some industries in the past few months. For example, it has not added any DeFi platform recently, with the number of protocols in the network remaining at 41.
Its total value locked has dropped by 17% over the last 30 days to $115 million, making it smaller than several newer chains, including Plasma, Unichain, and Berachain.
Similarly, the amount of stablecoin supply in the network dropped to just $40 million, which is also lower than that of other crypto projects.
Algorand Price Technical Analysis
The daily timeframe chart shows that the Algorand price has been in a strong downward trajectory in the past few months, moving from a high of $0.3383 in June to the current $0.1740.
ALGO’s price has formed a death cross pattern, as the 50-day and 200-day Exponential Moving Averages (EMAs) crossed. This is one of the most popular bearish technical analysis patterns.
The Algorand price has also crashed as top oscillators like the Relative Strength Index (RSI) and the MACD have continued to move downwards.
Therefore, the token will likely continue falling as sellers target the next key support level at $0.1483, its lowest level in April this year. A move below that level will confirm the bearish outlook and signal further downside in the near term.
On the other hand, a move above the 50-day moving average will invalidate the bearish outlook and signal further gains as investors sell the news.
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