- Algorand price remains locked in an upward-sloping channel.
- ALGO has failed to react to the news that the protocol’s utility is expanding.
- Now, this cryptocurrency seems to be holding above a critical support level.
Algorand price decline of over 50% in February has been followed by a rising channel formation, suggesting that new buyers are not eager to buy despite the expansion of the network’s utility.
Emerging as a blockchain leader
Buying.com, a leader in e-Commerce fulfillment and distribution, has announced the launch of its BUY token on the Algorand blockchain. The token will enable the company to aggregate all orders and deliveries into a simple entry point.
The key to releasing the token on ALGO was the minimal transactions costs and speed offered by this blockchain. Essentially, it will allow Buying.com to quickly reward its suite of clients by capitalizing on the services.
Netobjex, lead developer at Buying.con, reiterated why the firm decided to launch the token on the ALGO network.
Algorand is emerging as a blockchain leader with over 500 companies who have already integrated Algorand into their stack. With its low transaction fees, it meets the needs of Buying.com.
The new token is expected to launch in Q2 2021, validating the strength of the Algorand ecosystem.
Algorand price poised to retest February’s lows
The near-term outlook for Algorand price is negative. ALGO has not been impulsive as it drifts higher in a channel formation to just the .382 Fibonacci retracement of the February decline. This is a sign that there remain some weak holders behind this cryptocurrency.
Currently, the downside trendline of the channel at $1.062 needs to provide support for a potential rebound.
A failure to hold above this barrier projects a decline to at least $1.005 in the short-term, with the potential to retest the February low at $.8365 in the coming weeks.
ALGO/USD 4-hour chart
The outlook for Algorand price can change if it can rally above the channel’s upper trendline and through the .50 Fibonacci retracement level of the February decline. The convergence of those two levels creates a formidable challenge for a bullish resolution. However, a 4-hour candlestick close above this resistance level could push ALGO to the .618 Fibonacci retracement level at $1.458.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Here are the best and worst-performing cryptocurrencies in H1 2024
A recent report by Crypto Koryo on Wednesday revealed meme coins as the top performers among cryptocurrencies so far in 2024, with several altcoins coming in behind. The worst-performing tokens are DeFi and governance tokens.
Ethereum poised to follow Nvidia's steps as Bitwise files updated S-1 draft
Ethereum (ETH) is down 3% on Wednesday following Bitwise filing an updated S-1 draft and a wider market downturn with potential Mt. Gox BTC supply flooding the market.
What to expect from altcoins as ETH ETF approval draws closer
As the crypto market continues consolidating on Wednesday, altcoins show mixed signals ahead of the spot ETH ETF launch. Many have predicted that the alt season may not occur in this cycle following the market lull. However, two key metrics suggest otherwise.
PolitiFi meme coins surge as Biden support lowers
Crypto prediction markets favor Kamala Harris over President Joe Biden as Democratic nominee in upcoming presidential elections. Meme coins based on Vice President Harris rallied amid BODEN token's 30% decline. Other tokens based on possible replacements for Biden experienced similar surges.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.