Why did the price of ALGO fall?
Algorand (ALGO) dropped 4.02% in the last 24 hours, underperforming the overall crypto market, which fell 1.82%. Here’s why:
- Concerns Over Fund Freezing – A report from Bybit highlighted ALGO as one of the blockchains that can freeze funds, raising questions about how decentralized it really is.
- Technical Resistance Levels – ALGO’s price hit resistance around $0.1816 and the 30-day moving average near $0.181, causing a pullback.
- Market Risk Aversion – The Crypto Fear & Greed Index is at 26 (“Fear”), and the Altcoin Season Index is at 29, showing investors are cautious and favoring safer assets.
Deep Dive
1. Decentralization Concerns (Negative Impact)
What happened:
A Bybit Lazarus Security Lab report published on November 12 pointed out that Algorand is one of 16 blockchains with built-in features that allow freezing of funds. While this is meant to protect users in cases like hacks, it has sparked worries about how decentralized Algorand really is.
Why it matters:
Decentralization is a core principle of cryptocurrencies. If a blockchain can freeze funds through centralized control, it may lose trust among users. ALGO’s bigger drop compared to Bitcoin (-4.02% vs. -1.82%) suggests some investors are selling because of these concerns.
What to watch:
Look for official statements from the Algorand Foundation explaining when and how fund freezing might happen. If the community feels this power is being misused, developers or validators might leave, putting more pressure on ALGO’s price.
2. Price Struggles at Key Technical Levels (Bearish)
What happened:
ALGO’s current price around $0.173 is below important resistance points:
- Pivot point at $0.1816 (a key intraday resistance)
- 30-day Simple Moving Average (SMA) at $0.181, which has been trending down since October
- Fibonacci retracement level at $0.1985, marking a recent high on November 8
Why it matters:
The inability to break above these levels shows weak buying interest. The Relative Strength Index (RSI) is neutral at 47.92, while the Moving Average Convergence Divergence (MACD) indicator remains bearish.
What to watch:
If ALGO can hold above $0.1816, it might reverse the current downtrend. But if it falls below $0.17, the next support level is around $0.1609 (the 78.6% Fibonacci retracement).
3. Altcoin Weakness Amid Market Uncertainty (Mixed Signals)
What happened:
The crypto market dipped after the U.S. Senate passed a temporary funding bill, delaying important economic data releases. This uncertainty led to more selling pressure on altcoins like ALGO:
- Altcoin Season Index is at 29, indicating a shift back toward Bitcoin dominance
- Bitcoin’s market dominance rose slightly to 59.25%
Why it matters:
With ALGO down 31% over the past 90 days, it’s especially vulnerable to investors moving money into safer assets like Bitcoin and Ethereum during uncertain times. Low trading volume (only 5.1% of market cap) makes ALGO’s price more volatile.
Conclusion
ALGO’s recent price drop reflects both specific concerns about its governance and broader market trends pushing investors toward Bitcoin. Although Algorand’s new Liquid Auth feature launched on November 12 aims to improve Web3 security, investors are focused on short-term risks.
Key points to watch:
- Can ALGO hold the $0.17 support level amid ongoing market fear?
- How will the Algorand Foundation address concerns about centralization?
- Will Bitcoin maintain its price near $105,000, influencing overall market sentiment?
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What could affect the price of ALGO?
Algorand’s price is caught between promising technology upgrades and ongoing concerns about its token distribution.
- Growth in Real-World Asset (RWA) Tokenization – Projects like Lofty on Algorand could increase demand for ALGO (positive).
- Concerns Over Centralization – The Algorand Foundation owns 30-50% of ALGO tokens, raising questions about control (negative).
- Cross-Chain Bridges – The upcoming Allbridge integration could improve liquidity by late 2025 (positive).
Deep Dive
1. Real-World Asset Tokenization (Positive Outlook)
What’s happening:
Algorand supports tokenized assets such as real estate (Lofty), government Treasury bills (Midas), and business solutions (TravelX). The market for tokenized real-world assets is expected to grow to nearly $19 trillion by 2030 (CoinMarketCap). Recent partnerships with companies like Taurus and Stellar focus on tokenizing renewable energy, showing growing institutional interest.
Why it matters:
More tokenized assets mean more use of ALGO for paying transaction fees and staking, which can increase demand. For example, Midas’ pilot program with tokenized Treasury bills (mTBILL) has already handled $2 million in transactions. However, Algorand needs to keep pace with competitors like Ethereum and Polygon to capture this market.
2. Governance and Centralization Risks (Negative Outlook)
What’s happening:
The Algorand Foundation controls between 30% and 50% of all ALGO tokens (forum post). This level of ownership raises concerns about how decentralized the network really is. In 2022, the Foundation requested 330 million ALGO from reserves, which some see as a red flag.
Why it matters:
Centralization worries may discourage users who value decentralized finance (DeFi). If the Foundation sells large amounts of ALGO to cover expenses or grants, it could put downward pressure on the price. Although the number of network nodes increased by 179% in 2025, trust among stakeholders remains cautious.
3. Cross-Chain Liquidity Improvements (Positive Outlook)
What’s happening:
Algorand is partnering with Allbridge to enable USDC stablecoin transfers across more than 20 blockchains by the fourth quarter of 2025. Additionally, Wormhole’s NTT standard will make it easier to launch tokens across multiple blockchains (Decrypt).
Why it matters:
This improved interoperability could attract developers from Ethereum and Solana looking for lower fees (around $0.001 per transaction) and faster transaction times (finalized in about 3 seconds). However, the success of these bridges depends on avoiding security issues that affected similar projects in 2023 and 2024.
Conclusion
Algorand’s price will depend on how well it balances growing real-world use cases with concerns about token concentration. In the short term, watch for growth in tokenized assets and the launch of cross-chain bridges in late 2025. Over the long term, keep an eye on whether the Algorand Foundation reduces its large token holdings. The big question remains: Can ALGO use its readiness for ISO 20022—a global financial messaging standard—to surpass Ethereum in traditional finance adoption?
What are people saying about ALGO?
The Algorand (ALGO) community is divided between hopeful optimism and cautious skepticism. Here’s the latest:
- Positive technical signs – A chart pattern suggests ALGO could rise to $0.50.
- Growing ecosystem – Stablecoins, total value locked (TVL), and partnerships with real-world assets (RWA) are increasing.
- Bearish warnings – Some traders expect a drop to $0.14 due to weak activity on the network.
Deep Dive
1. @johnmorganFL: Chart Pattern Points to $0.50 Rally Bullish
“Algorand (ALGO) To Rally Higher? This Emerging Fractal Signaling Potential Upside Move”
– @johnmorganFL (35.2K followers · 194K impressions · July 13, 2025, 7:30 AM UTC)
View original post
What this means: This is a positive sign for ALGO. Historical price patterns, called fractals, suggest that if ALGO breaks above $0.26, it could follow past trends and climb toward $0.50, a key psychological level for traders.
2. @AlgoFoundation: Network Growth Accelerates Bullish
“Stablecoin market cap +49.5%, TVL +18.3%, RWA TVL >$90M in June 2025.”
– @AlgoFoundation (209K followers · 321K impressions · July 15, 2025, 10:02 PM UTC)
View original post
What this means: The rise in stablecoins, total value locked, and real-world asset partnerships shows that Algorand is gaining traction beyond just trading, attracting institutional interest and expanding its practical uses.
3. CoinMarketCap Post: Short Position Targets $0.14 Bearish
“Entry: $0.1816 | Stop Loss: $0.2045 | Target: $0.1460 – bearish structure confirmed.”
– Anonymous trader (June 15, 2025, 12:25 PM UTC)
View original post
What this means: Some traders are betting on ALGO’s price dropping to $0.14, citing weak market conditions and low liquidity. However, this bearish outlook could be invalidated if ALGO stays above $0.17.
Conclusion
Opinions on Algorand are mixed. While technical charts and ecosystem growth point to potential gains, concerns about weak on-chain activity keep some traders cautious. Watch the $0.26 resistance level closely—a clear break above it could confirm a bullish trend, while failure to do so might strengthen bearish views. Also, keep an eye on Algorand’s Q4 2025 roadmap updates for signs of increased institutional adoption.
What is the latest news about ALGO?
Algorand is balancing innovation with careful oversight as it introduces new privacy features and faces questions about its ability to freeze assets on its blockchain. Here are the key updates:
- Self-Custody Passkey Launch (November 12, 2025) – Liquid Auth replaces traditional logins with a decentralized way to manage your online identity using Web3 technology.
- Fund Freeze Feature Revealed (November 12, 2025) – A report from Bybit highlights Algorand’s ability to freeze user funds, sparking concerns about how decentralized the network really is.
- ISO 20022 Compliance Confirmed (November 11, 2025) – The founder of Cardano confirms that ALGO meets global financial messaging standards, helping it connect with traditional banking systems.
Deep Dive
1. Self-Custody Passkey Launch (November 12, 2025)
What happened:
Algorand teamed up with Pera Wallet to launch Liquid Auth, a new tool that lets users log into regular websites using their Web3 wallets instead of usernames and passwords. Unlike Google or Apple’s passkeys, Liquid Auth encrypts your login info with your private keys and stores it on your device, not on a central server.
Why it matters:
This makes logging in both easier and more secure by combining the convenience of traditional websites (Web2) with the security of blockchain technology (Web3). If more wallets support this, it could boost how many people use Algorand’s ecosystem. (Decrypt)
2. Fund Freeze Feature Revealed (November 12, 2025)
What happened:
Bybit released a report showing that Algorand is one of 16 blockchains that can freeze users’ funds if needed. While this can help stop hacks—like how BNB Chain froze $570 million after a security breach—it means that Algorand’s core developers have control over users’ assets.
Why it matters:
This raises questions about how decentralized Algorand really is. While freezing funds can protect users, it also means there’s a central authority with power over the network, which might upset users who value privacy and decentralization. Clear communication about how decisions are made will be important to maintain trust. (CCN)
3. ISO 20022 Compliance Confirmed (November 11, 2025)
What happened:
Charles Hoskinson, founder of Cardano, confirmed that Algorand complies with ISO 20022, a global standard for financial messaging. This puts ALGO alongside XRP and Cardano as blockchains ready to work smoothly with traditional banks and financial institutions.
Why it matters:
Being ISO 20022 compliant helps Algorand attract partnerships for tokenizing real-world assets and working with central bank digital currencies (CBDCs). However, just meeting the technical standard isn’t enough—Algorand will still need clear regulations and strong banking relationships to succeed. (CoinMarketCap)
Conclusion
Algorand is making strides in improving digital identity tools and preparing for institutional use, but it faces challenges around how decentralized it truly is. Its advantage with ISO 20022 compliance and Liquid Auth could attract users, but concerns about centralized control will need to be addressed to build lasting trust.
What is expected in the development of ALGO?
Algorand’s roadmap highlights improvements in governance, developer tools, and quantum security. Key upcoming milestones include:
- Rocca Wallet Preview (Q4 2025) – A self-custody wallet that uses passkey logins instead of seed phrases for easier access.
- AlgoKit 4.0 Launch (First Half of 2026) – An AI-enhanced developer toolkit for building smart contracts faster.
- Economic Sustainability Paper (2026) – Plans to update transaction fees and incentives to keep the network financially healthy.
- P2P Network Upgrade (2026) – Making the network more decentralized and improving how nodes communicate.
- Quantum-Secure Upgrades (Ongoing) – Adding protections against future quantum computing threats.
In-Depth Look
1. Rocca Wallet Preview (Q4 2025)
What it is:
Rocca Wallet is designed to make managing your own Algorand (ALGO) assets simpler by removing the need for complicated seed phrases. Instead, it uses biometric or passkey logins, based on decentralized identity standards. It’s also built to work smoothly with traditional finance apps.
Why it matters:
This could attract more everyday users by making wallets easier and safer to use. However, delays in setting standards or security checks could slow its release.
2. AlgoKit 4.0 Launch (First Half of 2026)
What it is:
AlgoKit 4.0 is a new set of tools for developers, featuring AI-assisted coding, support for popular programming languages like Rust and Swift, and reusable smart contract components. It also supports cross-chain connections through Wormhole’s NTT standard (Algorand Foundation).
Why it matters:
This could speed up the creation of decentralized apps (dApps) and boost decentralized finance (DeFi) on Algorand. But it faces competition from other developer platforms like Ethereum’s Foundry.
3. Economic Sustainability Paper (2026)
What it is:
Part of “Project King Safety,” this paper will suggest changes to transaction fees, staking rewards, and overall token economics to ensure Algorand’s network stays secure and financially sustainable without relying on outside funding.
Why it matters:
If done right, it could strengthen the network’s future. But if fees rise too much, it might discourage users. Market response will depend on how these changes affect ALGO’s supply and demand.
4. P2P Network Upgrade (2026)
What it is:
This upgrade aims to make Algorand’s network more decentralized by reducing dependence on relay nodes and improving direct communication between nodes. This follows a big increase in the number of nodes in early 2025 (CoinMarketCap).
Why it matters:
A more decentralized network is more secure and reliable. However, keeping enough nodes active will require good incentives.
5. Quantum-Secure Upgrades (Ongoing)
What it is:
Algorand completed its first transaction secured against quantum computing attacks in 2025 using Falcon-based signatures. Future updates will extend this protection to all accounts and include quantum-resistant proofs.
Why it matters:
This positions Algorand as a forward-looking blockchain ready for future threats, even though quantum computers capable of breaking current security are still years away.
Conclusion
Algorand’s roadmap balances making the platform easier to use now (with Rocca Wallet) and building strong, future-proof infrastructure (quantum security and tokenomics). Its focus on industry standards like ISO 20022 and partnerships with companies such as Turbo Energy (which is working on renewable energy tokenization) could help connect traditional finance with decentralized finance. Still, challenges remain in meeting decentralization goals and attracting developers.
Will Rocca Wallet’s user-friendly design lead to lasting growth in ALGO demand?
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What updates are there in the ALGO code base?
Algorand’s software has received major improvements in how efficiently it runs, the tools available for developers, and its security features.
- Technical Specifications Release (October 16, 2025) – Detailed documents explaining how Algorand’s consensus and cryptography work.
- AVM v10 & Dynamic Block Times (July 31, 2025) – Faster block processing and smarter contract capabilities.
- Economic Sustainability Overhaul (2025+ Roadmap) – Redesigned economic model to ensure long-term network security.
Deep Dive
1. Technical Specifications Release (October 16, 2025)
Overview: The Algorand Foundation published a complete set of technical documents that explain how the network reaches agreement (consensus) and secures transactions using cryptography. This serves as a clear guide for developers and researchers.
These documents detail Algorand’s Pure Proof-of-Stake (PPoS) system, including how blocks are proposed, voting rules, and cryptographic methods like VRF (Verifiable Random Function) for selecting committees. This transparency makes it easier for outside experts to audit the system and for developers to build on Algorand.
What this means: This is positive news for ALGO because clearer documentation lowers barriers for developers, encouraging more projects to use Algorand’s platform. (Source)
2. AVM v10 & Dynamic Block Times (July 31, 2025)
Overview: The network upgrade (Node v3.21) introduced dynamic block times, averaging about 2.8 seconds per block, and AVM (Algorand Virtual Machine) version 10, which includes new cryptographic features and improved smart contract functions.
Dynamic block times adjust how quickly blocks are created based on current network conditions, improving speed and efficiency. AVM v10 adds new commands like box_splice and box_resize for better on-chain data management, and supports advanced cryptography such as BLS signature verification, which is important for privacy features and connecting with other blockchains.
What this means: In the short term, this upgrade is neutral for ALGO’s price but is promising long term. Faster blocks improve user experience, and the new cryptographic tools open doors for advanced applications like zero-knowledge proofs and cross-chain compatibility. (Source)
3. Economic Sustainability Overhaul (2025+ Roadmap)
Overview: “Project King Safety” is a plan to update Algorand’s economic model by mid-2026. It focuses on improving staking rewards and reducing costs for running network nodes.
The goal is to balance incentives so more participants stay active and secure the network. This may include changes to the Minimum Balance Requirements (MBR) for accounts and assets. Additionally, xGov, a community-driven governance system, will give users more control over how grant funds are allocated.
What this means: This is cautiously optimistic for ALGO. A better economic model could encourage more validators to participate consistently, strengthening the network. However, success depends on how well these changes are implemented. (Source)
Conclusion
Algorand’s recent updates focus on making the network faster, more developer-friendly, and economically sustainable. While these technical improvements build a stronger foundation, the network’s growth will depend on how well the community adopts these changes. The introduction of xGov’s decentralized governance could play a key role in shaping Algorand’s future priorities.
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