Why is Algorand (ALGO) rallying despite Crypto flash crash?
Early Thursday, the rally in Algorand (ALGO) continues even as most of the major cryptocurrencies extend their weakness after the lightning crash that occurred on Tuesday and continue to keep the market leader Bitcoin well below the bar of the $ 50,000. As of this writing, ALGO / USD is trading at around $ 2.02.
The PoS blockchain designed for efficiency boasts high transaction speeds, requires no mining and, therefore, is one of the most energy efficient blockchains in the world today. According to a recent article from UCL’s Center for Blockchain Technology, Algorand’s blockchain consumes much less power than market leaders Bitcoin and even the Ethereum PoS network.
ALGO goes against the bearish mood in the crypto market following strong fundamental developments in recent times. As the global market cheered El Salvador’s adoption of Bitcoin as legal tender, Algorand got a bigger boost from this news as it is the blockchain of choice on which Koibanx is building the country’s crypto infrastructure. Koibanx is working to increase the adoption of blockchain technology in Latin America and its choice of Algorand is expected to boost the use of its blockchain network in the coming months.
Algorand will also cause a sensation in the DeFi and NFT sectors
The blockchain designed to support more applications in the financial services industry and support its digital transformation efforts recently announced plans to launch decentralized governance features early next month. In addition, its developer team is also working to expand its usability in the DeFi and NFT space, which could further increase its adoption among projects and support the optimistic mood towards ALGO among investors.
Skybridge Capital founder and co-manager Anthony Scaramucci also predicts a rise in Algorand’s price as the number of use cases and applications for its technology continues to rise. The ever-growing interest in DeFi projects as well as NFTs could also help increase the value of the ALGO token once its developers unveil new features in the coming weeks.
Key levels to watch
Technical analysis of the ALGO / USD H4 price chart reveals a strong bullish bias among the moving averages as well as the main MACD and momentum technical indicators. However, the RSI indicators suggest some interest among sellers as well at this time.
Algorand’s price broke through the pivot point at $ 1.21 as well as resistance at three levels – $ 1.45, $ 1.58 and at $ 1.96 as well. In the absence of additional hurdles, buyers are likely to advance smoothly in the near term.