Algorand (ALGO) hits new all-time low amid regulatory uncertainty

Algorand (ALGO) finds itself in an unexpected position as one of the bottom 15 performers among the top 200 cryptocurrencies by market capitalization over the past year. 

Joining the ranks of digital assets like The Sandbox (SAND), Flow (FLOW), Flare (FLR), and Wemix (WEMIX), ALGO’s journey through the crypto market has been marked by challenges and setbacks.

As a result of this steep downward trajectory, ALGO printed a new all-time low on August 17 of $0.0838, according to data retrieved by Finbold on August 18.

ALGO among tokens targeted by the SEC

Crypto market expert Ali Martinez weighed in on ALGO’s fresh downswing, giving a sarcastic shout-out to Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), “for his great work protecting investors.” 

Martinez also posted a video of Gensler’s 2019 speech at the MIT Sloan Idea Exchange – a conference hosted by the prestigious school back where Gensler was once a professor.

During his talk, Gensler made favorable comments for Algorand and its founder Silvio Micali. 

“Silvio Micali’s Algorand—who’s a Turing Award winner at MIT that I work with—Silvio’s got a great technology that has performance. You could create Uber on top of it.”

– Gensler said in the 2019 speech.

But Gensler’s support for the altcoin was short-lived as ALGO was one of many crypto tokens targeted by the SEC in its June lawsuits against Binance and Coinbase. Algorand’s previous all-time low came right after the lawsuits were revealed. 

Considering Gensler’s previous remarks on Algorand and the SEC’s subsequent actions, a significant portion of the crypto industry accused Gensler of being a former shill of Algorand and Micali. 

ALGO price analysis

At the time of publication, ALGO was trading at $0.10, down 7.45% over the past 24 hours. As seen from the below chart, the cryptocurrency slightly recovered after reaching a new all-time low. 

Algorand plummeted more than 14% over the past week and over 17% on the month, losing around $130 million in market cap during this slump.

Over the past year, ALGO’s price plunged by more than 72%, making it the 15th worst-performing crypto asset among the top 200 based on market capitalization. 

However, although this is a new record low for ALGO, the token has not closed below its key horizontal support area of $0.11. This means that the possibility of reclaiming this crucial level remains valid. 

If that happens, ALGO could witness a major breakout to the upside. On the other hand, failing to do so could pave the way for further declines. 

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