- 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.
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