Algorand (ALGO) chart performance was nothing short of a rollercoaster. According to facts from CoinGecko, yYesterday, the value of the asset plummeted to an all-time low and is currently down nearly 10% in the past 24 hours.
Algorand registers new low
Yesterday, during the significant downturn in the crypto market, the price of Algorand fell below notable support. The asset fell to a price of $0.0905 despite maintaining its stability and aiming to stay above $0.11 over the past week.
This price move resulted in more than $50 million being wiped from the asset’s market cap in the past day. Algorand’s market cap stands at $755 million, down 7.1% from Thursday’s previous all-time high of $808 million.
Despite the carnage that the asset’s market cap and price are currently suffering, trading volume has moved in the opposite direction. ALGO’s trading volume has risen from a low of $46.5 million yesterday to a high of over $73 million at the time of writing.
This is not surprising as it points to a possible violent sell-off. Furthermore, it is worth noting that before the current massacre of ALGO, the chairman of the US Securities and Exchange Commission once recognized Algorand as a ‘great technology’.
At least on Algorand, I agree with Gary. Gensler is optimistic about Algorand!😅 pic.twitter.com/BnKkU8d8gS
— Mister Huber🔥🦅🔥 (@Leerzeit) November 14, 2021
Despite positive reviews, even from the SEC, the asset eventually became embroiled in legal disputes, leading to its inability to maintain stability and eventually hitting an all-time low.
Legal complications taking their toll?
In addition to ALGO’s price action, the the past few months have been tumultuous for Algorand. Two lawsuits have cast long shadows over its progress. In its lawsuit against cryptocurrency exchange Bittrex in April, the SEC hinted that ALGO is a security under US law.
This classification opened the box of regulatory challenges for Algorand and influenced investor perceptions.
Complicating matters for Algorand was another SEC lawsuit against the behemoth crypto exchange, Binance, in June 2023. This lawsuit named ALGO, which exacerbated its woes and dragged to its recent historically low prices.
When looking at a possible cause for ALGO’s bearish moves in recent months, both high-profile legal disputes within a short time frame can be considered one of the reasons, as external factors such as regulatory challenges can significantly impact investor sentiment.
Featured image from iStock, chart from TradingView