What does ALGO’s strange price development say?
As Bitcoin and ETH consolidate as a number of altcoins make impressive rallies, many see this as the start of the altcoin season. In the past few days, tokens like AVAX, MANA, and CRO have been some of the most recognizable names out there.
On the other hand, ALGO is drawing attention to itself with even higher profits and showing quite a strange price movement.
However, ALGO does not seem to be able to avoid the effects of the market-wide sell-off. The price is down almost 23% in 5 days after rising to $ 2.9 on November 18 thanks to the announcement of the listing on Upbit.
The major Korean exchange announced that it has listed ALGO and users can now buy tokens in the local currency, KRW. This immediately caused ALGO to peak at $ 2.99 after rising 70%.
ALGO 4 Hour Price Chart | Source: Tradingview
That positive price didn’t last too long, however, and dropped to $ 1.80 shortly thereafter.
However, the Algorand network appears to be driving growth and the price could rise again soon.
Organization cares more
Over the past year, Algorand has quickly become a major competitor in the smart contract platform space. This places more emphasis on the participants moving towards a multi-chain approach.
ALGO’s ROI against the USD was an impressive 472.75% last year. In addition, the cryptocurrency is growing to 20th place by market capitalization as news like PayPal announce the possibility of future integration of ETH, DOT, SOL and ALGO.
In addition, as protocols such as Yieldly and Tiny Man were implemented on Algorand, the demand for ALGO gradually increased. This is reflected in the number of payment transactions, which hit an all-time high of 1.02 million last week.
Number of transactions ALGO | Source: IntoTheBlock
HODL. to enhance
With almost 15 million addresses, ALGO is one of the coins with the most holders in the area.
The number of ALGO owners has more than doubled compared to the previous year from 6.87 million in November 2020 to 14.94 million at the time of going to press.
Address for ALGO | The source: IntoTheBlock
Looking at the statistics of ALGO owners, it can be seen that investors make up the highest percentage.
The number of investors makes up 62.3% or 64.3 billion ALGO and these are addresses that hold between 0.1% and 1% of the circulating supply.
Investors (blue), whales (green), retailers (orange) | Source: IntoTheBlock
Note the graph below, the HODL mood has been prevalent since August of this year, especially as the number of HODLers is increasing.
The source: IntoTheBlock
The growing number of investors and HODLers as well as a good allocation of offers appear to be very promising for ALGO.
Although there is a lot of upside potential due to the correct index direction by ALGO, the price still needs a big move up.
And yet, ALGO is still over 40% below the 2019 ATH. To close the value gap, this altcoin will need solid price action going forward.
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According to AMBCrypto