2024

Algorand

Swing

Rise

Swing.xyz

<p>While some cryptocurrencies are breaking their all-time highs at the first light of a bull run, others seem to be waiting for their moment. Algorand, with its rapidly expanding network, experienced a meteoric rise before plunging into a brutal correction. But behind this volatility lie intriguing market movements that warrant a deeper analysis of this crypto.</p>
<h2 id="h-the-spectacular-rise-of-algorand-a-network-in-full-swing">The Spectacular Rise of Algorand: A Network in Full Swing</h2>
<p>Since December 1st, the Algorand (ALGO) network has seen <strong>its number of active addresses soar by 300 %</strong>, jumping from 123,000 to over 427,000. This exponential increase, fueled by heightened adoption and growing blockchain use, has propelled <strong>the <a href="https://www.cointribune.com/en/crypto-markets/algorand-algo-en/" target="_blank" rel="noopener noreferrer nofollow">ALGO price</a> to a peak of $0.6133</strong>.</p>
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     <p lang="en" dir="ltr">Active <a href="https://twitter.com/search?q=%24ALGO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ALGO</a> addresses spiked by over 300% since December 1st, signaling a significant uptick in network activity. <a href="https://t.co/SgfvB3HiiZ" rel="noopener noreferrer nofollow">pic.twitter.com/SgfvB3HiiZ</a></p>— IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1864269124240581029?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 4, 2024</a>
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<p>However, this dynamic has encountered a <strong><a href="https://ambcrypto.com/algorand-drops-despite-a-300-surge-in-active-addresses-why/" target="_blank" rel="noopener noreferrer nofollow">strong correction</a></strong>. Within 48 hours, the price of ALGO dropped by 10.5 %, reaching a floor of $0.459. According to IntoTheBlock, this <strong>intense network activity</strong> should have stabilized the increase.</p>
<p>But the decline in active addresses, which now stands at 343,000, has weakened this momentum.</p>
<p><strong>Key figures</strong>:</p>
<ul>
 <li>A 318 % increase in the monthly price;</li>
 <li>A decrease in large transaction activity from 309 to 162;</li>
 <li>A net outflow of major holders down to -25.34 million ALGO coins.</li>
</ul>
<p>These data illustrate that, without <strong>the confidence of major crypto investors</strong>, the market struggles to maintain a sustainable ascent.</p> 
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<h3 id="h-crypto-market-whales-turn-their-backs-on-algo"><strong>Crypto Market: Whales Turn Their Backs on ALGO</strong></h3>
<p>The recent volatility of Algorand highlights <strong>the importance of major market players</strong>, often referred to as “whales”. In recent days, they have significantly reduced their activity, preferring <strong>to sell rather than buy</strong>. The result: a notable decrease in the net flow of tokens and a market dominated by short positions.</p>
<p>According to Coinglass, the long/short ratio reveals that the majority of investors are now betting on <strong>a continued price decline</strong>. At the same time, the negative funding rate on the crypto exchange DyDx confirms that selling positions dominate.</p>
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<p>This retreat of the whales reflects their caution in the face of an uncertain trend. “<em>When the whales leave the waters, it is often wise for the small fish to wait for their return</em>,” some may likely say.</p>
<p>Yet, if the current support at $0.45 holds strong, a rebound could propel ALGO towards a resistance of $0.71.</p>
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<p>Amid the turmoil, Bitcoin recently soared beyond $100,000, <a href="https://www.cointribune.com/en/bitcoin-soars-and-takes-back-57-of-the-market/" target="_blank" rel="noopener noreferrer nofollow">capturing 57 % of the crypto market</a> and relegating altcoins more or less to the background. A boon for maximalists, but a frustrating wait for those hoping for an imminent altseason. The path still seems long for a trend reversal.</p>

Crypto: Algorand Collapses After A 300% Surge In Active Addresses

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