The post Algorand’s ‘80% hike’ – Can traders profit from ALGO and buy the dip now? appeared on BitcoinEthereumNews.com.

ALGO’s active addresses have risen from 104,000 to 190,000 in just 24 hours  These addresses could be selling, following a 20% decline in the altcoin’s price  Algorand’s (ALGO) price dropped by more than 20% in the last seven days to trade at $0.371, at press time. The prevailing bearish trend seems to be a reversal from the rally seen earlier this month, one that saw ALGO clinch a multi-year high of $0.613.  Amid this dip, however, the number of active addresses has risen, according to IntoTheBlock. These addresses surged from 104,000 to 190,000 addresses in just 24 hours. At the same time, the new addresses rose from 24,000 to 95,000.  Source: IntoTheBlock The spike in active addresses could be a result of traders selling ALGO to minimize their losses during the dip. Consequently, the spike in new addresses could be new traders engaging in speculative activity.  If ALGO fails to recover from the ongoing bearish trends as addresses continue to hike, it will indicate that selling activity has surged. This will, in turn, fuel a volatile downtrend.  Active address profitability plummets The profitability of active ALGO addresses dropped significantly too, hitting a one-month low after hitting a peak earlier this month. At the time of writing, the profitability of these addresses stood at 16% – A notable decline from 57% just two weeks ago.  Source: IntoTheBlock If these addresses are becoming less profitable, it could increase the selling pressure as traders seek to minimize losses. It could also suggest that the traders who bought during the rally are booking profits.  If the profitability keeps dropping, it could lead to negative and bearish sentiment that could push the price lower.  Technical indicators show THIS Technical indicators on Algorand’s four-hour chart revealed that selling activity has been on the rise. The Chaikin…

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Filed under: News - @ December 20, 2024 10:24 am