Why Algorand Active Addresses May Not Save ALGO Price | Airdrop Alert Pro

Over the past 30 days, the price of Algorand (ALGO) has increased by 360% as altcoins have risen overall. As a result, daily active addresses on the Algorand network surged to their highest level since November 7.

Normally, an increase in active addresses should be positive for the price. However, this On-chain analysis Explains why this may not be the case.

Algorand network activity rises

According to IntoTheBlock, Algorand’s active addresses surge As of this writing, the number has increased to 427,230. For those unfamiliar, active addresses refers to the number of unique wallets Transaction successful on the blockchain.

This indicator counts both senders and receivers. When this metric increases, it indicates rising user engagement, which is largely determined by price movements. On the other hand, fewer active addresses means less user engagement, which is negative.

In order for an active address to be bullish, it must rise along with the price. But in this case, The price of ALGO has dropped. Increased by 10% in the past 24 hours. Therefore, the increase in network activity may not support further upward trends, but that is not the whole story.

Another indicator shows ALGO’s Price May Face Challenges What is restored is social dominance. Social dominance is the proportion of cryptocurrency-related discussions compared to other assets in the top 100.

When the rating on this metric improves, there will be more discussion about altcoins. In most cases, this drives higher demand, which translates into increasing value.

However, according to data from Santiment, Algorand’s social dominance has dropped from 1.56% on November 30 to 0.71% today. Given the current situation, ALGO’s value could fall further.

ALGO Price Prediction: Altcoins May Head Lower

As of this writing, the price of ALGO is $0.51. On the 4-hour chart, the altcoin appears to be on the verge of breaking below the 20-period exponential moving average (EMA).

EMA is a technical indicator that tracks changes in an asset’s price over a given period. When the price is above the moving average, the trend is bullish. but In the case of Algorandthe price drop indicates that the coin is at risk of a sharp correction.

If confirmed, Algorand’s price could drop to $0.38. However, if Buying pressure increased and the altcoin failed to break below the EMA, which prophecy Probably won’t happen. Instead, its value could climb to $0.61.