Cryptocurrency investors face a challenging week as many altcoins hover at key support levels. Some have lost levels crucial for short-term bullish continuation. The remaining ones await increased volatility. What are the predictions for Algorand (ALGO)? What should investors expect?
Algorand (ALGO)
As we began the new month, ALGO price was trading around $0.18 and dropped to $0.15 yesterday, marking its monthly low. During the rally in March, the popular cryptocurrency climbed to $0.31. Is the bullish scenario now off the table?
Examining the order books for ALGO Coin on exchanges reveals an interesting picture. According to IntoTheBlock data, investors have placed buy orders for 54 million tokens on exchanges. Despite over $8 million in buy orders, there are sell orders for 80.2 million tokens amounting to $12.8 million.
The dominance of sellers suggests that any downward trigger could lead to rapid losses for ALGO Coin.
ALGO Price Prediction
Looking at Santiment data to gauge investor sentiment, we see that the weighted sentiment is negative. This metric, reflecting investor pessimism, confirms the weakness of potential upward jumps. Both the strength of the sell order block and the negative sentiment indicate that $0.16 could be revisited.
Examining the ALGO Coin purchase cost table, we see a wall of 2.68 billion tokens at $0.19. This means the resistance level could become even more solid. If the decline continues from $0.16, it is expected to extend to $0.14.
Is there no good news at all? Examining Algorand network activity, the increase in active addresses and wallets with balances greater than zero is encouraging. If network activity continues to strengthen, demand for ALGO Coin could rise again in favor of the bulls.
The key area is $0.16, and major activity will start from this decision point. As we see the price moving towards its next stop, trade activity will concentrate between $0.14 and $0.12 or $0.18 and above. If positive news comes from the Fed, a new attempt towards $0.18 and then $0.31 could occur.
