September 22, 2021

Here’s Why Algorand (ALGO) Rallies despite Market Crash

Algorand (ALGO) extended its rally on Thursday as most top crypto tokens see weak moves following Tuesday’s flash crash.

The recent downswings in the crypto market appear to weigh on most top digital coins. Bitcoin lost the $50K levels as its struggles below $46K. However, ALGO/USD seems not bothered with the negative price actions in the cryptocurrency industry. While writing this content, Algorand has its price at $2.02.

The Proof-of-Stake blockchain designed to ensure quick transactions and efficiency does not need mining. With that, ALGO remains energy-efficient, solving the environmental issues related to cryptocurrency mining. According to recent Blockchain Technology reports by UCL, Algorand uses less power than the leading crypto, Bitcoin and Ethereum.

ALGO escapes the bearish outlook in the cryptocurrency market with its excellent fundamental developments. Algorand received a massive upside push as the crypto community cheered Bitcoin adoption by El Salvador. That is because Koibanx utilizes ALGO’s blockchain to create the country’s cryptocurrency infrastructure. Koibanx targets to maximize blockchain usage in Latin America, and it selected Algorand to achieve its objectives. With that, Algorand is likely to explore higher price levels in the upcoming months.

ALGO to Dominate the NFT and DeFi Sectors

Algorand developers designed a blockchain to house many apps in the finance industry. Moreover, Algorand targets to expand digital transformation. For now, the network declared its goals to launch a decentralized feature at the start of the coming month. Moreover, the ecosystem’s developers plan to expand ALGO’s usage in the NFT and DeFi marketplace. Such a move will increase the crypto’s adoption and promote the bullish attitude of investors.

Anthony Scaramucci, Skybridge Capital founder, predicts that Algorand’s price will surge as its usability grows. The ever-increasing NFT and DeFi interest will also push the crypto high. Developers are now planning to reveal new functionalities in the upcoming weeks.

Levels to Watch

4H price chart tech analysis shows ALGO/USD’s massive bullish attitude in the momentum and MACD. Moreover, the moving averages support the bullish narrative. However, the Relative Strength Index shows sellers’ interest.

ALGO managed to break above the pivot point around $1.21. The upside actions also had the token overpowering the resistances at $1.45, $1.58, and $1.96. As the asset seems not to have obstacles ahead, market players can expect price upticks in the short term.

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