ALGO Drops 5.28% in 24 Hours Following Passkey Breakthrough and Market Volatility

On November 13, 2025, Algorand’s native cryptocurrency, ALGO, experienced a significant downturn across several timeframes, with its value dropping by 5.28% over 24 hours to $0.1634. The losses over the past week, month, and year were even steeper, standing at -8.27%, -8.06%, and -51.24%, respectively. These declines mirror the heightened volatility in the broader market and reflect investor responses to both macroeconomic trends and specific industry events.

ALGO’s price drop coincided with a major announcement from the

Foundation: the introduction of Liquid Auth, a decentralized passkey management tool. Created in collaboration with Pera Wallet, Liquid Auth enables users to keep and manage their passkeys directly within their crypto wallets, eliminating the need for centralized authentication apps. Built on the Liquid Auth standard established by Algorand in 2024, this solution prioritizes user privacy, decentralized ownership, and self-custody. The initiative is part of a larger movement to transform digital identity and authentication in the Web3 ecosystem, with the Algorand Foundation promoting the open-source standard’s adoption across various platforms.

Liquid Auth marks the beginning of a broader project. The technology is freely available for both Android and iOS devices and is integrated into Pera Wallet, a popular wallet in the Algorand ecosystem. By adopting Liquid Auth, Pera Wallet seeks to empower users with complete control over their digital identities while retaining the ease of use found in centralized password managers. Importantly, this feature

require users to maintain a balance in Pera Wallet and does not compromise the security of any crypto assets held there.

Even with these technological advancements, ALGO’s market performance has remained weak, reflecting the prevailing cautious sentiment among investors. The pronounced declines across multiple periods underscore ongoing worries about liquidity, vulnerability to macroeconomic changes, and the sector’s exposure to regulatory and competitive pressures.

Recent technical analysis indicates that ALGO has fallen below important support thresholds. The 5.28% single-day loss is consistent with broader market sell-offs that typically occur during periods of impactful news. The declines over the past week and month suggest that ALGO could be entering a consolidation phase or facing continued downward momentum, depending on whether buyers return after these corrections.

Backtest Hypothesis

To determine the probability of a rebound following such multi-period declines, a backtest using historical price data can be performed. The goal is to analyze the average future performance after similar drawdowns since 2022. Four scenarios will be examined: 1) 24-hour drops of 5.28% or more, 2) 7-day losses of at least 8.27%, 3) 30-day declines of 8.06% or greater, and 4) 1-year decreases of 51.24% or more. Each test will assess average returns, win/loss ratios, and recovery times, providing perspective on how the market has typically reacted to comparable sell-offs in the past.