Analysts argue that Algorand is undervalued despite recent bearish price trend
|- Algorand has remained focused on the DeFi ecosystem, incentivizing users through yield and accrual.
- Proponents have identified a bearish trend reversal in Algorand and predicted a continuation of the altcoin’s downtrend.
- Algorand foundation recently announced a $300 million fund for the creation and adoption of DeFi.
Algorand is one of the few projects in decentralized finance that has contributed consistently to the development of the ecosystem. Despite ALGO being undervalued, the altcoin has posted losses consistently.
Algorand price fails to make comeback
Algorand has failed to recover from the recent bloodbath in the crypto market. While meme coins like Dogecoin, Shiba Inu and Ethereum-killers like Cardano recovered from the drop, Algorand price ranged below $0.56.
Algorand recently announced a $300 million fund to boost the development of the DeFi ecosystem. ALGO has consistently remained the focus in DeFi since the project offers users the opportunity to earn through yield and accrual. This makes it lucrative for investors and traders in DeFi.
Proponents evaluated the Algorand price trend and concluded that the project is undervalued. Algorand price has hidden bullish potential, and analysts predict a rally in ALGO.
David Cox, an analyst and trader, believes Algorand entered 2022 with a price rally, hitting a high of $2.60. However, the altcoin has witnessed a significant rise in profit booking and lost 71% of its market value since it hit its 2022 high.
Algorand price is trading below its 200-day moving average. The altcoin has retraced; however, analysts now have a bearish outlook on Algorand price. The altcoin’s recent downturn could continue, and it will collect liquidity for sustainable growth.
The altcoin has posted 17% losses over the past week as it collects liquidity before a trend reversal. Analysts are awaiting a comeback above $0.68 as the altcoin realizes its full potential.
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