A few weeks ago the price of the cryptocurrency ALGO, native to the Algorand network, woke up with great force, however, those high prices were quickly rejected. But is this really worrisome?
Right now the price of the crypto ALGO is $ 1.67, accumulating a loss of 2.33% in the last 24 hours. Its market capitalization is $ 10,535 million, so it is ranked 18th in the Crypto Online ranking.
To put us in context, Algorand is a self-sustaining and decentralized blockchain, capable of supporting a wide range of applications.
What makes this blockchain unique is its ability to accelerate transactions and offer greater efficiency than the more popular networks.
It is designed to offer cheaper transaction fees, thanks in large part to the fact that it does not require mining, as it uses a proof-of-stake protocol.
In December 2020, it processed more than 1 million transactions in one day. Currently, it processes an average of 17 transactions per second.
Algorand’s user base has grown exponentially over the months, as more DeFi applications are developed or migrated to this network. In September of this year the user base was 13 million, today there are almost 16.5 million.
Technical analysis of the Algorand cryptocurrency
In the weekly chart ALGO vs USDT we see the strong rejection of high prices, after the cryptocurrency went to touch $ 2.99.
This caused the price to be locked in a kind of bullish flag / wedge, which are chartist formations that indicate the rest of a trend for its subsequent continuation.
With the recent crypto market flash crash, SOMETHING went to visit $ 1.38. Immediately, bearish intentions were rejected, showing weakness from the bears to mark a new lower low, and reaffirming the possibility that the decline of the last few months is just a pullback.
Right now the price of the Algorand cryptocurrency is being defended on a large support zone around $ 1.5. It seems quite likely that the next bullish momentum will start over this area.
To confirm that the bulls have regained control, the resistance located at $ 1.98 must be broken. An advance confirmation is that the price exceeds $ 1.76. If this happens, SOMETHING could go in search of the Fibonacci target of $ 3.56 (-61.8%). Being conservative, the maximum of $ 2.99 could be put to the test again.
To think about sales, the support at $ 1.51 must be lost, which would give way to selling up to $ 1.15 probably.
At the moment, the bullish scenario is the most likely.
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