- Multiple signs point to a possible shift of the guard in favor of the bulls.
- ALGO maintains healthy address growth despite declining prices.
algorithm [ALGO] bulls can’t seem to catch a break as liquidity continues to bleed out of the cryptocurrency. But is there an end in sight to this bearish onslaught? Recent data suggested that a bullish relief could be imminent for ALGO.
How much are 1,10,100 ALGOs worth today
ALGO has made several bullish recovery attempts in recent months. Unfortunately, every attempt was shot down. That has been the case with his performance since the beginning of July. To put its bearish performance in perspective, it fell to a low of $0.091 in June. This was the lowest recorded price in history.
ALGO reached a low of $0.10 in the past 24 hours. This represented the lowest price so far this month. This downside pushed the Relative Strength Index (RSI) and Money Flow Index (MFI) into the oversold zone.
Source: TradingView
The fact that the price registered a significant increase was the first sign that there was some accumulation. It was trading at 0.11 at the time of writing after gaining 8% at the time of writing. This slight increase was not the only reason for bullish optimism.
On-chain data confirms a build-up of bullish momentum
We saw a spike in Algorand’s social dominance in the last 24 hours, where it rose to its highest level in the last four weeks. In addition, ALGO’s weighted sentiment metric has increased despite falling prices. This combination of statistics indicated that the cryptocurrency has received more attention.
Source: Sentiment
More attention and optimistic sentiment would no doubt generate sufficient demand for a spindle. Especially after the downside that ALGO experienced. More visibility at lower price levels usually supports bullish volumes.
It is not surprising that the volume of the cryptocurrency has gradually increased in recent days. It recorded its four-week high in the past 24 hours.
Source: Sentiment
While rising volume and sentiment pointed to an improving outlook, there was one key observation that supported the likelihood of a strong pivot. The Algorand network maintained strong positive address growth over the past 30 days. This despite reports that it will shut down its largest DeFi protocol.
Source: Metrics.algorand.org
Algorand’s address growth confirmed that the network was still on the right track, even if ALGO’s price action suggested otherwise. However, price action is not always an accurate representation of the performance of the underlying network.
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The recent pivot also reflected the overall performance of the market. Crypto bulls received a healthy boost in the past 24 hours thanks to a favorable ruling in the long-running legal battle between Ripple and the SEC.
