cypto downturn sinks ALGO to all-time low

• Algorand price fell to $0.09, its all-time low, amid wider crypto sell-off.
• ALGO’s highest ever price was $3.56 reached in 2019 – it also hit $2.80 during the 2021 bull market.
• Regulatory headwinds have coincided with further declines for ALGO.

Algorand is among several altcoins that had it extremely rough during this week’s crypto sell-off. As Bitcoin plummeted to under $25k and Ethereum to under $1.6k, Algorand’s native token ALGO shed nearly 10% to a new all-time low of $0.09.

Algorand price outlook – what next for ALGO?

While ALGO bulls are currently looking to reclaim the $0.1 level, sell-off pressure remains strong and the path of least resistance is downwards. According to CoinMarketCap data, Algorand’s trading volume in the past 24 hours has decreased by 34% to about $23.6 million. The market cap is down to $756 million.

Algorand price reached its all-time high of $3.56 on June 20, 2019. This was reached shortly after the layer-1 blockchain launched amid wider bullish sentiment regarding its potential. Mainstream recognition, multiple partnerships and a recent key network upgrade highlight positive factors for Algorand.

However, price has largely been in a descending mode since peaking at $2.80 during the last bull market.

Algorand price chart. Source: TradingView

In recent months, negative sentiment triggered by the US Securities and Exchange Commission Chairman (SEC) has impacted ALGO price. 

The SEC’s naming of Algorand as one of the unregistered securities in lawsuits against Bittrex and Binance accelerated the downward trend for the cryptocurrency. Incidentally, SEC Chair Gary Gensler once hailed Algorand’s potential as a blockchain network.

A lot looks to have changed since then from the SEC chair’s perspective.

In the market, ALGO is likely to suffer negative momentum even as the market eyes a bounce. Sellers are in control with the RSI firmly in oversold territory despite bulls’ attempts. In this case, further profit taking looks likely before an upward reversal materializes.