While large cryptocurrencies, such as Bitcoin and Ethereum, trade in the red, the Algorand price continues to see profits. Over the last day, this cryptocurrency has been one of the best-performing assets in the sector.
At the time of writing, Algorand price trades at $0.36 with a 14% profit and a 21$ profit in the last 24 hours and 7 days, respectively. The cryptocurrency’s performance over this period has only been surpassed by XRP with a 28% profit and Chiliz (CHZ) with a 29% profit.
Algorand Price Reacts To Ecosystem Developments
Data from DeFi Llama indicates that the Algorand price short timeframe rally is supported by a spike in network activity and ecosystem growth. Over the past week, Algorand’s total value locked (TVL) has followed the price with a 13% spike or $250 million onboarding the network.
Algorand’s TVL growth has surpassed Binance Smart Chain, Stellar network, Arbitrum, Avalanche, and others. This trend seems to be rooted in a hike in development activity in Algorand.
Additional data from research firm Santiment indicates that Algorand has been the 4th blockchain in terms of activity on a weekly timeframe. Surpassed by Ethereum, Polkadot, and Solana, Algorand has seen over 70 projects build on its ecosystem.
This coincides with a series of partnerships, and projects announced for the ecosystem. The most important seems to be a cooperation with the Federation International Football Association (FIFA) to host a non-fungible token (NFT) and marketplace.
In the coming months, FIFA will celebrate the world cup with the best football teams in the world. This event attracts the attention of millions of fans around the world. The Algorand-based project called FIFA Plus Collect will provide people with a unique experience by allowing them to “own the greatest moments in football history”.
The FIFA+ Marketplace is live now! Start building your personal collection and be part of the richest and most authentic football legacy of all time. Enjoy the FIFA+ Collect experience. https://t.co/gRoXHzhVHJ #fifa #fifaplus #fifapluscollect #algorand pic.twitter.com/SWJzDCjbve
— FIFAPlusCollect (@FIFAPlusCollect) September 22, 2022
Can ALGO Sustain Its Gains?
In addition to important partnerships and development activities, the Algorand price seems to be positively reacting to a mainnet network upgrade. Implemented with AVM 7, this update is said to bring quantum security to the blockchain with an improvement over its smart contract functionality.
The announcement seems to have captured the attention of market participants. The Algorand price’s performance seems to be a translation of the upgrade and network activity.
At the time of writing, Algorand’s price is coming into heavy resistance at its current levels. In order to sustain the current bullish momentum, the cryptocurrency must break above 3 critical levels: $0.36, $0.43, and $0.51.
The current state of the crypto market might cap ALGO’s price upward trajectory. The market is reacting to macroeconomic force, but if Bitcoin and Ethereum can reclaim higher levels, Algorand might gather enough momentum for a breakout above resistance.
Algorand investors may need to lower expectations despite ALGO’s 4x surge
It’s raining new users for the Algorand [ALGO] chain following its partnership with FIFA. Recall that the world governing body and the DeFi blockchain had agreed to collaborate on the idea centered around digital collectibles.
Now, Algorand has made its promise true. As of 22 September, Algorand announced that it was launching the “FIFA Plus Connect” NFT collection. According to the ALGO team, the collection would allow fans to possess exciting football moments as NFTs.
NOW LIVE: @FIFAcom makes digital history with the launch of @FIFAPlusCollect powered by #Algorand! Fans around the world will now have the opportunity to affordably own the greatest moments in football 👉 https://t.co/2Pk9NdBGB5 pic.twitter.com/uN5k2hfBeu
— Algorand (@Algorand) September 22, 2022
Double + Double equals?
With the development, ALGO considered it a time to pursue new milestones. According to IntoTheBlock, ALGO’s active addresses had significantly improved. However, the notable part was that most new addresses had quadrupled their daily transactions in about three months.
The active address transactions were not the only ones affected by the update. The price, too, adopted a positive effect. At press time, ALGO was trading at $0.3855 in the last 24 hours, according to CoinMarketCap. This was the second day in a row that ALGO had maintained a green outlook, especially after activating the “State Proofs” stage.
Despite the landmark, ALGO had not done much in development activity. On-chain platform, Santiment reported that the development activity on the chain was at its lowest for a while.
In contrast, the NFT launch had spiked a massive interest in ALGO. Santiment data showed that social dominance was at its highest since May. Coincidentally, it was around the same time that the partnership was announced that represented the last highest point.
Gold, but not all glitters?
As ALGO has continued to be the “cheerful giver” of late, traders seemed to have taken advantage. According to Coinglass, the futures open interest rate in the coin had been rising in the last 24 hours across the top crypto exchanges.
Similarly, the perpetual-futures market recorded over 50% activity across the same exchanges. Despite that, it wasn’t all sweet nor sour as liquidations ravaged a sizable number of ALGO traders.
Based on Coinglass data, over $2 million has been liquidated in the last 24 hours. As expected, short-traders were the ones who paid the price. While long liquidations accounted for $193,620; short were liquidated about $826,560. Compared to previous months, these short liquidations were incredibly more than normal.
Despite the market producing profits, ALGO investors may need to slow down on expectations. While anything could happen, there was no clear sign that the green would continue till the end of the third day.
Biggest Movers: XRP Hits 4-Month High, ALGO Up 17% On Thursday
XRP moved to a fresh four-month high on Thursday, which comes as volatility in the crypto markets eased, following the latest U.S. Federal Open Market Committee meeting. The token rose past a key hurdle in today’s session, hitting its highest point since May. Algorand was another notable mover, with prices climbing by as much as 17%.
XRP raced to a four-month high on Thursday, after hovering close to this milestone during yesterday’s session.
XRP/USD rose to a high of $0.4461 on Thursday, as prices moved past a resistance point of $0.4200.
This surge in price sees XRP hit its highest point since May 12, when the token was trading above the $0.5200 point.
Today’s climb sees prices rise by over 10%, and comes as the 14-day relative strength index rose to a multi-month high of its own.
As of writing, the index is currently tracking at 69.29, which is its strongest point in over nine months.
History shows that when price strength climbs to these levels, bears often reenter, as they view prices as being overbought.
As a result, we could see a possible reversal in the coming days.
Algorand (ALGO) was also in the green in today’s session, as prices rose by as much as 17% on Thursday.
Today’s rally saw ALGO/USD hit an intraday peak of $0.3842, which comes less than a day after trading at a low of $0.3102.
This high is the strongest point that algorand has traded at since mid-August, which is the last time prices also collided with a resistance point of $0.3800.
Following this earlier collision, ALGO has moved lower, and as of writing, is currently trading at $0.3711.
The token is also currently in overbought territory, tracking at 67.05, which is the highest point it has hit since April.
If ALGO were to move above this current threshold, we would likely need to see price strength move even deeper into overbought territory.
Register your email here to get weekly price analysis updates sent to your inbox:
Where do you think algorand is heading? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
How Algorand’s fast, furious upgrade could render it untouchable
Algorand’s [ALGO] mission to leave other blockchain networks behind while processing decentralized and traditional transactions faster has reached another level.
In its latest release which a large part of its community considered impressive, Algorand announced that there has been a major upgrade to its mainnet.
The new update would allow ALGO to process 6,000 transactions per second. Before now, ALGO had one of the fastest networks for processing transactions out of the entire crypto projects. Its mainnet was responsible for processing over 1,000 transactions per second (tps).
Only the likes of Solana [SOL], Ripple [XRP], and CELO had swift networks that matched up. However, the latest mainnet upgrade may mean ALGO would have surpassed these projects by a far margin.
1/ Major Protocol Upgrade: Now live on #Algorand MainNet, the release introduces State Proofs for trustless cross-chain communication and 5x faster performance 👉 https://t.co/nN6hw5MPxp pic.twitter.com/wH2tW2fi2O
— Algorand (@Algorand) September 7, 2022
Fast, furious, and…
Besides the speed, Algorand seemed to have solved the challenges of third-party interference. Rotem Hemo, a member of Algorand’s founding team, mentioned it in his Medium post.
According to him, the mainnet upgrade also included a State-of -Proof integration. With the State-of-Proof, the network’s users can make trustless cross-chain communication without involving a third party.
While the technology is relatively new, it seems like the solution to curbing the interference of centralized validators. Further to its complete decentralization goals, Hemo also mentioned an update related to Decentralized Application (DApp) developers as the upgrade came with an AM7 on-chain addition to ease developer access. Hemo said,
“AVM 7 provides the ability to create randomness oracles that will enable every smart contract to get fresh randomness from a secure source when needed.”
Riding the wave
Since the public revelation, the ALGO price seemed to have made some positive moves. As per CoinMarketCap, the coin was trading at $0.295 at press time, picking a 2.73% increase in the last 24 hours.
Meanwhile, its volume was on the downside as it decreased 9.04% to $78.30 million.
Considering the on-chain activity, ALGO’s development activity was surprisingly on a downtrend trend.
Normally, such a significant upgrade was supposed to reflect around the metric but it was not the case according to Santiment. However, its market cap was able to follow the same uptick as its price, rising to $2.06 billion.
Still, ALGO is down 91.58% from its All-Time High (ATH). With this mainnet upgrade, investors may reignite their hope of the coin hitting $3.56 again.
What are AI and Web3 Valuation, Tokenization, and Monetization as a Service (VTMaaS)?
Valuing and monetizing tokenized assets requires tremendous skill and expertise. Thus, rendering asset management as a tool to raise growth...
Bitcoin Price Climbs Upward With Trading Volume At A 3-Month High
Just in the past 24 hours, the crypto market was practically in green, with several assets reclaiming some values, including...
Bitcoin, Ethereum Technical Analysis: Market Volatility Remains High, As BTC Climbs Above $19,000
Volatility in cryptocurrency markets remained high on Thursday, as markets began to consolidate following a recent red wave. Bitcoin was...
Russia Said To Allow Crypto Mining In Regions With Hydroelectric And Nuclear Power
Cryptocurrency mining should be allowed in areas with excess energy and prohibited in those that experience deficits, according to Russian...
Bitcoin․com To Deploy Verse Development Fund To Expand Ecosystem
press release PRESS RELEASE. Bitcoin.com, a digital ecosystem and secure self-custody platform where users can accessibly and safely interact with...
Bitcoin Notches Highest Trading Volume In Over 3 Months, Binance Data Shows
Bitcoin (BTC) trading volume is on the rise, as the cryptocurrency market shows some signs of improvement. As of this...
QNT sets the stage for a bearish pullback but here’s the catch
Quant’s QNT holders have enjoyed a smooth ride to the top in the last seven days as the rest of...
Binance Coin [BNB] may disappoint traders in Q4 based on these reasons
Binance Coin’s [BNB] antics, since the start of September, may have left investors in disappointment. However, a report revealed that...
While Terra Founder Do Kwon Looks Ways To Escape, Mike Novogratz Wishes Him Success
After a day long of trading in the red zone, the cryptocurrency market is now flashing green. Yet, the market...
Ethereum [ETH]’s latest mixtape may leave investors scratching their heads
Ethereum [ETH], ever since the Merge, faced some massive selling pressure that came as a after-effect of the event. However,...
ApeCoin’s ventures may garner whale attention, but will bulls follow the whales
ApeCoin is not ‘monkeying’ around as the Bored Ape Yacht Club (BAYC) token has managed to get the attention of...
ICE Merge: Decentral Games Implements A Plan You Definitely Wants To Know
Decentral Games is implementing a plan that would see ICE token emissions drop by 55%. Yes, you read it right,...
Chiliz revisits a support zone, bulls can look to take profit at…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s...
ATOM price struggles but Cosmoverse showcases the strength of Cosmos ecosystem
ATOM price struggles but Cosmoverse showcases the strength of Cosmos ecosystem Liam ‘Akiba’ Wright · 2 hours ago · 2...
Reasons why IOTA’s latest bull rally may be nothing new under the sun
IOTA’s staging network, Shimmer, is set to go live by 28 September according to a tweet from Shimmer’s Twitter handle....
Stablecoin Economy Continues To Deflate — USDC’s Market Cap Shed $6.7 Billion In 83 Days
Just over two months or approximately 83 days ago, the stablecoin usd coin (USDC) had a market valuation of around...
Terraform deems South Korea’s Do Kwon arrest warrant ‘unfair’
Terraform deems South Korea’s Do Kwon arrest warrant ‘unfair’ Oluwapelumi Adejumo · 4 hours ago · 2 min read The...
Optimism beams with an ‘OpenSea’ of opportunities, but OP opts out
Layer-two (L2) scaling solution, Optimism [OP] is the latest addition in OpenSea’s series of blockchain integration. According to the NFT...
1% drop6 days ago
Euro Taps A $0.973 Low Against The US Dollar, Analysts Claim British And EU Currencies Are Trapped In A ‘Doom Loop’
$385 million6 days ago
Bitcoin Miner Marathon Digital’s Shares Downgraded After Compute North Files For Bankruptcy Protection
bank of israel5 days ago
Digital Asset Exchange Platform Granted ‘Crypto Financial Services Provider License’ By Israeli Regulator
Bitcoin mining6 days ago
Ethereum Hard Fork Instigator Chandler Guo Claims The Value Of ETH And Forked ETHW Will Be The Same In 10 Years
antminers5 days ago
While Known Mining Pools Currently Dominate, Unknown Miners Discovered The Most Bitcoin Blocks During The Last 13 Years
Interview7 days ago
Digital Transformation In MSMEs In India Will Soon Overpower The Global Market, Says Rajan Sethuraman
Banking6 days ago
IRS secures court approval to probe records of M.Y. Safra Bank, SFOX users over failure to report taxes
Avalanche4 days ago
WEF Launches Crypto Sustainability Coalition To Leverage Web3 Technologies In Climate Change Battle