The Algorand price is showing some encouraging signs. A raft of bullish news could be the bullish kicker that sends ALGO back to the highs.
Algorand is last trading at $1.043 -$0.0200 (-$1.86%)
Despite a wave of negative sentiment sweeping across crypto markets, Algorand is holding up relatively well. The open-source blockchain project has built a loyal following among investors, lured by its unique features and impressive resume.
Algorand was founded by M.I.T professor and Turing Award laureate Silvio Micali. His vision was simple: build a blockchain that would solve some of the issues facing earlier cryptocurrencies.
ALGO promises users high-speed, low-cost transactions that benefit from the highest levels of security. Importantly, Algorand is based on the energy-efficient Proof of Stake consensus and, since April, has been carbon-neutral.
Over the last week, several positive developments have arisen. Firstly, Digital asset management firm Arrington capital launched a $100 million fu.d which plans to invest in Algorand initiatives.
Secondly, a team of former Paypal executives has launched a new cross-border payment provider using the Algorand blockchain.
The 4-hour chart shows that since May’s crypto crash, the Algorand price has been grinding higher in a rising wedge pattern.
As yet, ALGO has been unable to break above the horizontal resistance of $1.5500. However, a series of higher lows is encouraging, and ALGO may soon break higher.
A close above $1.5500 should encourage momentum buying and target the 21st of May high at $1.6800. Furthermore if cryptocurrencies as a whole start to rally, ALGO could exceed this target by some distance.
Of course, this will depend somewhat on the broader market sentiment, and for now, the outlook remains mixed.
As optimistic as I am, I would cancel my immediate bullish view if ALGO loses the support of the rising trend line at $0.9500. This would indicate the Algorand price may get cheaper, offering long-term investors a better entry point.
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