Algorand price has been in a strong bearish trend in the past few months. The ALGO token is trading at $0.7315, which is close to its lowest level since July 21st. It has crashed by 75% from its highest level since 2021, bringing its market cap to about $4.88 billion. It is now the 31s biggest cryptocurrency in the world.
Why has ALGO slipped?
Algorand is a blockchain project that lets users build fast and robust decentralized applications (dApps). The network was initially started to disrupt the financial services through decentralized finance (DeFi). However, the network has been adopted in other sectors like climate change, metaverse, and non-fungible tokens (NFTs) in the past few months. According to its website, Algorand now has over 23 million addresses.
Algorand has been used to build hundreds of decentralized projects in key areas like analytics, art, decentralized utility, infrastructure, and real estate. Some of the top-ranked apps built using Algorand are AlgoFund, Kaafila, Choice Coin, and Folks Finance. According to DeFi Llama, its DeFi ecosystem has a total value locked (TVL) of $159 million. Algofi, the biggest DeFi app in the network, has a TVL of more than $93 million. Tinyman, Pact, and Yieldly follow it.
The Algorand price has declined because of the rising competition, and its network growth has been a bit small. For example, Algorand was started in 2017 and has a TVL of just $159 million. On the other hand, Cronos was launched in November last year and has seen its TVL jump to over $4 billion.
Algorand price prediction
The daily chart shows that the ALGO price has been in a tight range in the past few weeks. The coin has remained between the support and resistance levels at $0.66 andIn addition, it0.990. It has moved slightly below the 25-day and 50-day moving averages, while the MACD has moved below the neutral level.
Therefore, the outlook for the coin is neutral at this stage. A move below the support at $0.6600 will signal that there are more sellers. It will lead to a possibility of it falling to about $0.50. On the other hand, a bullish comeback will be confirmed if it moves about $0.990.