The Algorand price has defied gravity. While a sea of red has engulfed the cryptocurrencies market, ALGO has jumped to an all-time high. It is trading at $2.030, which is a few points below its all-time high of $2.20.
ALGO joins a small club of cryptocurrencies that have done well during the current cryptocurrency sell-off. Others that have bucked the trend are Solana, FTX Token, Elrond, Hedera Hashgraph, Near Protocol, Fantom, and Avalanche.
Most of these platforms are the so-called Ethereum-killers. That means that these are projects that help developers build decentralized applications. In the past few months, these killers have done relatively well as investors hunt for the next big thing.
Algorand’s rally is likely tied to a company called Koibanx, which was approved by El Salvador’s government to offer blockchain products. The company uses Algorand’s platforms for its development. Therefore, with El Salvador making headlines, there is a likelihood that investors sought to benefit from the move by investing in Algorand.
Still, in the past few months, many developers have shifted to Algorand’s technology. Some of these companies are OTOY and Rhovit, which are in the gaming space and IDEX, Republic, and Yieldly that are in the DeFi industry.
The daily chart shows that the ALGO price has been in a major bullish trend in the past few weeks. And yesterday something important happened as the coin’s price surged above the previous all-time high of $1.8610.
The coin has also formed what looks like a cup and handle pattern that is shown in red. Still, the coin has not yet formed a handle section.
Therefore, in my opinion, I suspect that the Algorand price will stage a major pullback in the near term as the excitement about El Salvador wanes. If this happens, the next key level to watch will be at $1.50,which is about 26% below the current level. This view will be invalidated if the coin moves above $2.3.