The Algorand price is crawling back after it tumbled sharply during the weekend. ALGO is trading at $1.8145, which is about 45% above the lowest level during the weekend. Still, the coin is substantially lower than its all-time high of $3.
Algorand has achieved strong growth in the past few months. At its peak, the market capitalization of the coin was more than $15 billion. This has dropped to about $11 billion, making it the 18th biggest cryptocurrency in the world.
This growth was helped by the strong adoption of Algorand’s blockchain. Today, it is used by companies in most industries like finance, gaming, and even climate change. Still, like all cryptocurrencies, its price was not spared from the crash that happened during the weekend.
There are several reasons why the crash happened. The most important of them was the likelihood that the Federal Reserve will start hiking interest rates and abandon its easy-money policies. Another possible reason was profit-taking since most coins had staged a strong recovery.
The daily chart shows that the ALGO price has moved sideways in the past few days. In this period, the coin has struggled moving above $1.50 and $2.12. The current price is about 40% below the all-time high. It has also moved slightly above the 25-day and 50-day moving averages.
Therefore, because of the chart pattern, the forecast for the coin is neutral. A break above $2.12 will be a bullish sign and signal that the coin will likely keep rising. On the flip side, a move below the weekend low of $1.25 will signal that there are still more sellers left in the market.
This post was last modified on Dec 06, 2021, 08:10 GMT 08:10