The crypto market experienced a relief over the past couple of days following escalated declines, with most assets recouping incurred losses. That saw digital tokens escaping their bearish zones to look for more demand. Nevertheless, Algorand appears as an exception in that narrative.
The alternative token failed to recover the incurred losses. Though investors of other assets cheered some gains, ALGO holders remain in losses even with the broad market cap surging from $841B to press time levels at $1.05 trillion.
ALGO Requires a Boost
May-June sessions saw Algorand (ALG0) losing over 60% of its value. The altcoin hasn’t recovered from this slump, even after most alts regained some of the lost grounds. ALGO has only gained 24.25% from the $0.27 lows. That’s brief compared to the likes of Lido DAO, which saw a remarkable 320% surge.
While publishing this blog, the alt changed hands at $0.341, dropping 7.51% over the past 24 hours. Also, Algorand trades well below its all-time high levels. The worst thing is that the altcoin doesn’t seem to recover soon.
That’s because, despite optimistic cues by price indicators, ALGO remained prone to saturation which will trigger a momentum shift.
ALGO and Bears
The ADX (Average Directional Index) is yet to accumulate momentum for active trends, while the PS (Parabolic SAR) shows an upside bias. However, even speculating the potential of ADX crossing 25.0 and offering Algorand the strength required for rallies, ALFO will soon meet heightened selling momentum.
The RSI (Relative Strength Index) confirmed that as it approached the overbought territory on July 20. Meanwhile, bullish tendencies from the broad market mean the alt is prone to explore the overbought territory. That will catalyze trend reversals unless the cryptocurrency industry enters a bullish cycle, which isn’t near for now.
Moreover, the occasional upside breakouts might mean a false catalyst for ALGO investors. Most of the holders are desperately looking for recoveries. Moreover, 94.2% of the investors have not seen profits over the past seven months. Therefore, ALGO traders will see downturns unless external factors trigger rallies for the altcoin.
The only possible bullish trigger remains the Women’s FIFA World Cup, which has Algorand as its official sponsor. Nevertheless, the event is nearly a year away, meaning it can’t rescue the token from its current bearishness.
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