Algorand (ALGO) Price Fails to Rebound After the Recent Crypto Market Crash

Algorand (ALGO) Price Fails to Rebound After the Recent Crypto Market Crash
Algorand (ALGO) Price Fails to Rebound After the Recent Crypto Market Crash

Algorand (ALGO/USD) is one of the tokens hardest hit by the recent downtrend, and despite repeated attempts to bounce back, the altcoin has failed to make significant gains. The total loss of tokens for the month exceeded 20%.

Algorand attempted a false breakout on November 19 and rose above $2, but the market crash that followed soon resulted in a sell-off. However, ALGO’s sell-off may also indicate a bullish recovery is imminent.

Algorand’s Recovery Expectations 

Like other markets, ALGO has been on a downward trend for the past five weeks. The token’s weekly low is at $1.32, which is a low. The decline was due to increased selling pressure, which now looks a bit excessive.

Algorand’s Relative Strength Index (RSI) is between 50 and 40, which usually heralds a bull market. Additional sales can leave ALGO at extremely oversold levels, which may mean the main trend is reversed to highs above $2.

When the downtrend subsides, ALGO will enter a relief recovery and seek to make up for the losses of the past five weeks. However, the broader cryptocurrency market can prevent any major rebound attempts.

Due to market shorts, downward pressure on ALGO prices is also a possible consequence. Still, short positions are likely to be limited to the $1 to $1.10 range.

Launch of a Tokenized S&P Index Fund on Algorand

With the recent major adoption for the Algorand blockchain, it is now more likely that there will be an upward trend at ALGO. A digital asset company, Securitize has launched two tokenized funds with S&P Dow Jones Indices

These two tokenized funds track the price changes of the Standard & Poor’s index and are developed on the Algorand blockchain. According to Jamie Finn, Co-Founder and President of Securitize, Algorand is an ideal choice as the digital assets company initially ran large-scale Reg A + funding on the blockchain.

Additionally, Finn indicated that Algorand’s speed and cost-effectiveness make it a natural choice for supporting tracking of Standard & Poor’s two most innovative indices.