ALGO's recent price action has continued to be under pressure, with a clear divergence between its price performance and on-chain data. On the one hand, the price has not yet escaped its long-term downward trend; on the other hand, the distribution of validators and transaction activity on the Algorand network have not weakened in tandem.

$0.0801 becomes short-term support.

The article mentions that ALGO is still operating within a long-term downward wedge pattern and has repeatedly failed to regain its position above the 20-day exponential moving average, indicating that short-term selling pressure has not yet eased significantly.

If the price breaks below the $0.0801 support level, the next target could be around $0.0503. This level is also close to the lower edge of a descending wedge, making it a key area to watch.

However, the greater resistance above remains at the 200-day exponential moving average. If the price fails to break through this long-term moving average effectively, the rebound is more likely to be seen as a temporary recovery within a downtrend.

Decentralized systems still rank highly

Unlike its weak price performance, Algorand's network fundamentals have not deteriorated significantly. According to Chainspect's Nakamoto Coefficient rankings, Algorand currently ranks fourth in terms of blockchain decentralization.

The article also states that Algorand currently has 1,542 active validators, higher than Solana's 707 validators mentioned in the article, indicating that its validators are more dispersed.

Daily transaction volume rebounded to over 800,000 transactions.

In terms of on-chain activity, Algorand's daily transaction volume once approached 1 million transactions in the past 90 days. By the end of June, this number had fallen below 500,000.

Since then, the daily transaction volume on the network has rebounded to over 800,000, indicating that on-chain activity has recovered somewhat despite the continued weakness in prices.

Overall, ALGO still faces downward pressure in the short term, but the recovery in network decentralization and trading activity provides some support for its fundamentals. Going forward, market focus will remain on whether the $0.0801 support level holds and whether the price can regain its position above the 200-day moving average.