• Algorand price is currently trading at a four-month low even as many other altcoins have charted year-to-date highs.
  • About 96% of all ALGO holders bought their supply out of FOMO around September 2021 highs of $2.4.
  • Over time a lot of these investors moved their supply around, which is, at the moment, in the hands of mid-term holders.

Algorand price has seen lesser growth over time, and while most of the market is recording recovery, this altcoin is lingering at the lows of its current trading price. The problem here is not just a lack of growth but also a lack of support from the investors, who cannot be blamed for their nominal conviction given their current conditions.

Algorand price needs a miracle rally

Algorand price trading at $0.18 is at a near four-month low. Usually, this bearishness is offset by the cryptocurrency's investors' bullishness, but this will not be the case with ALGO. The reason behind this is that ALGO holders have no incentive to act bullish at the moment. And it is not just a certain chunk that is bearish, it is over 96% of the investors.

ALGO/USD 1-day chart

ALGO/USD 1-day chart

Most of the holders bought their supply around the 20% range of the altcoin's all-time high of $2.38 in September 2021. These investors are known as all-time highers, and all of them have amassed their stash at prices above $1.89. Generally, this cohort represents a small part of all the investors, but in the case of Algorand, it is the other way around as 16.75 million addresses or 96% of all the investors are all-time higher.

Algorand all-time highers

Algorand all-time highers

With Algorand price at the present price levels, all these investors are currently underwater and for their supply to turn profitable again, the altcoin would need to chart a rally between 870% to 1000%. Since the possibility of this happening is highly unlikely, it seems like the only option for these investors is to either HODL or dump their stash.

By the looks of it, this might have happened as balance upon being categorized by time shows that most of the ALGO supply is in the hands of mid-term holders. These mid-term holders, also known as "Cruisers", are the addresses that have held their supply for a time period between 1 month and 12 months. 

About 67% of all ALGO has been held for this time period, and only 20% of the supply has remained unmoved for more than a year, classified as "Hodlers". This makes Cruisers potentially detrimental as mass selling at their hands could trigger a further decline in Algorand price. Since this supply lacks the conviction of long-term holders, even a nominal fall in prices could lead to panic selling.

Algorand supply by time held

Algorand supply by time held

The only way to counter this situation is by Algorand price miraculously marking gains and climbing back to aforementioned targets, as even a new year-to-date high will not be able to do much for the cryptocurrency.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP