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Algorand lost over 30% this week following a bearish downside after ALGO touched the descending support level. For now, the altcoin retests the past foothold that helped rebound early this month. Here are things that might emerge as the ALGO price pushes toward the mid-June support. The alt will likely witness a rebound from current zones. Remember, Algorand’s current price remained highly tied to the broad market. That means another massive plunge could trigger more selling momentum for ALGO.
One development that could catalyze massive declines is the SEC’s move concerning the BTC ETF proposal by Grayscale. Grayscale revealed that the regulator rejected its application, and BTC plummeted beneath $20K. Such cases might catalyze increased FUD and additional selling strength, this more downside possibilities for Algorand.
Can State Proofs Catalyze ALGO’s Revival?
Algorand revealed its plans for cross-chain interoperability during the recent Consensus 2022 conference. Its team declared a new feature, state proofs, as a solution for secure cross-chain interactions.
Noah Grossman, Algorand’s CTP, stated that state proofs infrastructure allows users outside the algo blockchain to verify and track Algorand state safe. Grossman said that different blockchains might adopt ALGO’s state proofs. This adoption could trigger an upside for Algorand price actions in the long-term. Meanwhile, current market conditions restrain the asset’s near-term price moves.
Meanwhile, continued bearish conditions in the marketplace repel investors. The risk market environment saw most investors withdrawing their funds. Such developments had ALGO’s market cap maintaining downside tendencies. Despite the recent declines, Algorand’s market capitalization stayed notably higher at this publication than mid-June levels. Though its higher lows indicate a massive performance, whales’ supply hovered at the lowest monthly zones at this publication.
Considering whales hold less Algorand than mid-June signals faded confidence amid the current market conditions. Nevertheless, the latest developments revealed during the Consensus 2022 conference could clarify the next bull run.
As highlighted, broader market sentiment remains crucial for MANA. While publishing this blog, bears ruled the cryptocurrency spectrum. The past 24 hours saw BTC losing the vital $20K, changing hands near $19,425 at this publication. It might take long before assets record impressive and steady upward movements.
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