ALGO -5.28% After 24-Hour Slide Amid Passkey Innovation and Market Turmoil

Algorand’s native token, ALGO, declined sharply across multiple timeframes on November 13, 2025, with the 24-hour drop reaching -5.28% to settle at $0.1634. The 7-day, 30-day, and 1-year declines were even more pronounced, at -8.27%, -8.06%, and -51.24%, respectively. The decline reflects broader market volatility and investor reactions to macroeconomic signals and sector-specific developments.

The drop in ALGO occurred alongside a major product launch from the Algorand Foundation: the release of Liquid Auth, a decentralized passkey manager. Developed in partnership with Pera Wallet, Liquid Auth allows users to store and manage passkeys directly in their crypto wallets, replacing reliance on centralized authenticator apps. The innovation is built on Algorand’s 2024-established Liquid Auth standard and emphasizes self-custody, privacy, and decentralized control. The launch is part of a broader push to redefine digital identity and authentication in the Web3 space, with the Algorand Foundation advocating for the adoption of the open-source standard across platforms.

Liquid Auth represents the first phase of a larger initiative. The technology is available free of charge on Android and iOS and is integrated into the Pera Wallet, a widely used Algorand-based wallet. By implementing Liquid Auth, Pera Wallet aims to give users full control over their digital identities while maintaining the same convenience as centralized password managers. The feature does not require users to hold funds in Pera Wallet and does not pose any risk to crypto assets stored there.

Despite the technological progress, the token’s performance has struggled amid broader market sentiment. The sharp multi-timeframe declines highlight concerns among traders and investors about liquidity, exposure to macroeconomic shifts, and the sector’s sensitivity to regulatory or competitive developments.

Technical analysis of the recent price action shows the token has broken below key support levels. The 5.28% drop within 24 hours aligns with broader sell-off patterns observed in the crypto market during high-impact news cycles. The 7-day and 30-day declines further suggest that ALGO may be entering a phase of consolidation or bearish momentum, depending on whether buyers re-enter the market after these pullbacks.

Backtest Hypothesis

To assess the likelihood of a recovery after such multi-timeframe declines, a backtest can be conducted using historical price data. The objective is to evaluate average forward performance after similar drawdown events since 2022. Specifically, four scenarios will be tested: 1) 24-hour declines of 5.28% or greater, 2) 7-day declines of 8.27% or greater, 3) 30-day declines of 8.06% or greater, and 4) 1-year declines of 51.24% or greater. Each backtest will measure average returns, win/loss ratio, and time to recovery, offering insight into whether the market historically responds positively or negatively to such sell-offs.