The Algorand price remained under pressure as macro risks keep cryptocurrency traders at bay. The ALGO token price is trading at $1.5900, which is close to the important support level at $1.5510. It has a market capitalization of more than $9.6 billion making it the 17th biggest cryptocurrency in the world.
Algorand is a blockchain project that helps developers build decentralized applications (DAPPs). It also helps companies and other organizations build apps that solve real-world problems. Some of the top companies that use Algorand are Circle, IDEX, StableCorp, Voyager, and Chainalysis.
Algorand works through what is known as the Algorand Virtual Machine (AVM), which supports smart contracts with turing-complete languages, larger program sizes, and more functionality. AVM runs on all nodes in the Algorand blockchain and contains a stack engine that executes smart contracts and smart signatures.
The Algorand price has done relatively well in the past few months as investors keep believing that it could grow to become a formidable alternative to other platforms like Ethereum and Binance Chain. As shown below, the number of accounts with at least 1 Algorand has been in a bullish trend.
The four-hour chart shows that the ALGO price has found a strong support at $1.5510. It failed to move below this support since September 21. A closer look also shows that it has formed what looks like a descending triangle pattern.
In price action analysis, a descending trendline is usually a sign of a bearish continuation. At the same time, the Algorand price downward trend is being supported by the 25-day and 50-day moving averages (EMA).
Therefore, the token will likely break out lower in October because of the descending triangle pattern. If this happens, the next key support level to watch will be at $1.20, which is about 23% below the current level. On the flip side, a move above the upper side of the descending triangle will invalidate this view.