Algorand Supports GENIUS Act but ALGO Price Fails to React to the Positive News

Key Takeaways

• Even after the Algorand Foundation endorsed the GENIUS Act, ALGO trades flat near $0.17.
• Strong resistance between $0.17 and $0.19  shows many holders will likely sell at breakeven.
• ALGO is near the lower trendline of a falling wedge, but weak momentum undermines a breakout.

Algorand’s native token, ALGO, remains near $0.17 despite its foundation’s recent “GENIUS Act” endorsement.

ALGO’s inability to break above its current range highlights how deeply selling pressure has taken root in a market where good news often translates into rallies.

Technical indicators paint a mixed picture. First,  on-chain activity appears to be picking up. But this has not translated into an Algorand price rally.

Here is what could be next for cryptocurrency after this.

Algorand Struggles to Catch a Bid

Over the past 30 days, Algorand’s price has shed nearly 22% of its value. Despite the downturn, the Algorand Foundation, the project’s non-profit arm, strongly supports the recently approved GENIUS Act.

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The legislation tightens the rules for the stablecoin ecosystem, restricting reserves to safe, highly liquid assets and offering clear regulatory guidelines for issuers.

According to the foundation, the GENIUS Act aligns with its vision for a secure, transparent digital finance framework and reinforces its commitment to compliant innovation.

“Algorand’s ASA tokens already ship native freeze, clawback & default-frozen flags — exactly the compliance knobs the bill demands. Reserve addresses and on-chain supply visibility match the Act’s 1:1 backing & audit requirements, so no extra code is needed. Our carbon-neutral PoS hits the ESG checkbox for institutions eyeing regulated digital dollars,” Jennie Levin, Algorand’s Chief Legal and Operating Officer said about the matter.

While sentiment surrounding the GENIUS Act remains optimistic, on-chain data reveals that ALGO’s price is running into resistance. Insights from the In/Out of the Money Around Price (IOMAP) indicator show notable sell walls between $0.17 and $0.19.

At these price points, the volume of addresses holding ALGO at a loss far outweighs those in profit. This imbalance suggests that many investors may be eager to exit positions once breakeven levels are approached.

As a result, Algorand’s price could struggle to break through this resistance range, and a retracement may be more likely in the short term.

ALGO Price Analysis: Altcoin Remains Flat

On the daily chart, ALGO’s price has formed a falling wedge, which is supposed to be bullish for the altcoin. However, the cryptocurrency’s price is inching closer to the lower trendline.

Beyond that, the Moving Average Convergence Divergence (MACD) has dropped to the negative region, indicating bearish momentum.

Like the MACD, the Awesome Oscillator (AO) reading has dropped to the negative zone. Failure to exit this downtrend could cause ALGO to decline further.

If this continues, the altcoin’s value could sink below $0.14. Alternatively, if momentum becomes bullish and demand for Algorand increases, the price could rise as high as $0.30.