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After briefly surpassing $1.00 earlier this year, Algorand's native token ALGO has faced a challenging recovery. The ALGO price dropped below $1.00 earlier this week and has yet to reclaim that level.
Last Saturday, the token suffered a significant blow, losing approximately 12% in the first 27.75 hours of the weekend. However, it soon rebounded from a five-month low of $0.808, closing the weekend just under $1.00—ALGO's highest point against the USD since then.
Impact of the Fed Meeting
Federal Reserve Chair Jerome Powell's remarks on Wednesday about U.S. benchmark short-term rates pressured Bitcoin's upward trend. Powell confirmed that the Fed would maintain near-zero rates (0%–0.25%) following the FOMC meeting.
However, the Fed plans to withdraw some stimulus measures enacted since the pandemic began. Cryptocurrency markets showed signs of recovery post-announcement but later resumed a downward trend as investors realized rate hike plans remained active. Since then, ALGO has traded between $0.85 and $0.95, with occasional outliers.
Here are key events surrounding Algorand and its market performance:
Algorand Foundation Warns Community About Dusting Attacks
On Wednesday, the Algorand Foundation tweeted a warning to ALGO holders and the broader community about scams and fraud, particularly dusting attacks—common on public blockchains to expose wallet addresses.
"Algorand community and holders: Exercise caution against scams/fraud, including potential dusting attacks sending Algo with URL-filled comment fields. This is not from Algorand nor legitimate!"
This week, the foundation also announced a collaboration with the University of Florida’s Digital Worlds Institute to advance blockchain education through a dedicated lab.
Grayscale Adds Algorand to Watchlist
Grayscale, a digital asset investment firm, added ALGO to its 2024 crypto investment product candidate list—a relief for the Algorand ecosystem, which has seen minimal progress recently.
Despite solving the blockchain trilemma (security, scalability, decentralization), Algorand struggles with mainstream adoption. Its smart contract capabilities and DeFi/payment applications lag behind competitors like Avalanche.
Neutral On-Chain Metrics
Data from IntoTheBlock reveals:
- 90% of ALGO holders are "out of money."
- 6% are profitable, while the rest break even.
- 47% of holders entered the market in the last 30 days, driving momentum toward December highs.
Overall, on-chain metrics classify ALGO as "neutral."
ALGO Price Outlook
The crypto market is slowly recovering from Wednesday’s sell-off. ALGO trades just above $0.95, down nearly 16% over the past 7 days.
In the last 24 hours, ALGO rose ~5%, outperforming most large-cap tokens except Ethereum. Short-term sentiment remains bearish due to broader market negativity.
👉 Learn how to invest in Algorand
FAQ
Q: Why did ALGO drop below $1.00?
A: Broader crypto market corrections and Fed policy uncertainty contributed to ALGO’s decline.
Q: What are dusting attacks?
A: Scammers send tiny amounts of crypto (dust) to wallets with malicious links in transaction notes to track user activity.
Q: Is Algorand a good investment now?
A: While ALGO shows promise with its tech, market conditions and adoption rates suggest cautious evaluation.
For deeper insights, explore our 👉 comprehensive Algorand guide.
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