- Algorand token has plunged to the lowest point since 2020.
- The Relative Strength Index (RSI) has fallen to March lows.
- There are concerns that some exchanges will delist it.
Algorand price plunged to the lowest level since March 2020 as concerns of delisting continued. ALGO has plunged in the past four straight months, meaning it has fallen by more than 59% from the highest level this year.
Delisting concerns rise
Algorand is one of the biggest blockchains that seek to dethrone Ethereum, the most popular chain in the world. Its technology allows developers to build dApps that are significantly fast and have lower fees than Ethereum.
Algorand’s popularity jumped in 2022 when it was selected to be the official blockchain for FIFA, the world’s governing body of soccer. FIFA also used its technology to launch its non-fungible token (NFT) ecosystem.
However, the reality is that Algorand has not gained a lot of traction among developers. For one, data compiled by DeFi Llama shows that there are only 25 DeFi dApps in its ecosystem. These dApps have a combined total value locked (TVL) of over $142 million.
A closer look at the ecosystem shows that AlgoFi has a market dominance of 48% in this ecosystem, Only nine of these chains have a TVL of over $1 million.
Further, a look at CryptoSlam shows that the volume of Algorand NFTs traded has dropped sharply in the past few months.
Algorand price has also plunged because of the rising concerns that it could be delisted in several exchanges. ALGO is one of the 67 crypto tokens that the SEC believes are securities, which could force American exchanges like Coinbase, Gemini, and Kraken to delist it. Delisting could have a negative impact on Algorand.
Algorand price prediction
The daily chart shows that Algorand price has been in a strong bearish trend in the past few months. And this week, the token managed to move below the key support level at $0.1586, the lowest level in 2022. This decline is also being supported by all moving averages.
Further, the Relative Strength Index (RSI) moved below the oversold level of 30. A keen look shows that it crashed below the key level of 26, the lowest point in March. The Average Directional Index (ADX) has soared to the highest level since January 2nd.
Therefore, there is a likelihood that Algorand coin price will continue slumping in the coming days as sellers target the next key support at $0..10. Short-sellers should be aware of potential dead cat bounce risks. This is where a falling aset makes a sudden jump and then retreats.
