Algorand Faces Potential Downturn Amid Rising Staking Withdrawals

The Algorand (ALGO) cryptocurrency is showing signs of increased selling pressure as on-chain data reveals a notable surge in staking outflows. This trend suggests declining investor confidence, which could trigger further price declines if the withdrawal momentum continues. Market analysts are closely monitoring ALGO’s support levels, as a breach below key thresholds may accelerate the downtrend. The shift in staking behavior aligns with broader market caution ahead of macroeconomic uncertainty, placing additional strain on altcoin performance.

Algorand price technical analysis

The daily chart shows that ALGO has been in a prolonged bearish trend over the past few months, dropping from a high of $0.6130 in November to a low of $0.1463.

The coin has formed a death cross indicator as the 50-day and 200-day Exponential Moving Averages crossed each other. It has also dropped below the 78.6% Fibonacci Retracement level. Therefore, the path of least resistance for ALGO remains bearish, with an initial target at $0.1463, its lowest point this year. A move below that level would open the door to further downside, potentially toward $0.10.