ALGO pumped by more than 30% last week courtesy of Algorand’s major development. The network revealed a partnership that would make it FIFA’s official blockchain. The announcement might just be the start of a robust growth phase for ALGO but is it big enough to push it back to its previous ATH?
Stepping up the game
Algorand’s deal with FIFA is quite a big deal especially in terms of the potential value that it can unlock for the network. FIFA happens to be one of the most organized and successful sports organization and it with that comes a lot of opportunities to enhance Algorand’s utility.
It may also provide more visibility and encourage other high-profile deals. Such developments would have a positive impact on ALGO and potentially strengthen its recovery to previous ATHs in favorable market conditions.
The crypto market concluded last week with a strong bearish performance but ALGO managed to go against the market and remain in the green. The FIFA partnership announcement acted as the catalyst that fueled ALGO’s healthy bull run during the week. It traded at $0.75 at the time of writing, which is a significant gain from its weekly low at $0.56.
ALGO still has some more potential upside to cover before it becomes overbought. It crossed the RSI’s neutral level, and enjoyed healthy accumulation in the last 7 days according to the MFI. The DMI confirms the trend reversal in favor of the bulls but it might be due for a cool-down especially as traders take profit after the latest rally.
As far as its on-chain metrics are concerned, ALGO registered a strong volume and market cap uptick in the first week of May. It reflects the sudden surge of interest in the cryptocurrency especially after the FIFA partnership announcement.
What’s next for Algorand?
Although ALGO achieved a positive performance, it still heavily discounted from its all-time high of $2.99. However, the latest developments will likely aid its recovery, especially if the rest of the market falls in line. Algorand is also rapidly turning out to be one of the best NFT networks. Its environmentally-friendly nature is currently attracting NFT partnerships from parties focused on green technology.
Algorand’s current position and latest development highlight its place in the market. ALGO may continue experiencing market headwinds once the hype dies down. However, its current growth trajectory should be accretive to ALGO’s long-term growth.
Polkadot, NEAR, and Algorand Price Analysis: 16 May
The crypto market abstained from flashing high volatility over the last 24 hours. But with the crypto fear and greed index still hovering in the ‘extreme fear’ zone, the near-term technicals of Polkadot, NEAR, and Algorand were in the neutral-bearish range.
Despite an uptick in the prices of these altcoins after rising from their record lows on 12 May, they lacked robust buying volumes.
After compressing in the $23.1 and $14.4 range for over three months, DOT bears finally snapped the nine-month floor at $14.4. The broader sentiment pulled the altcoin market all the way down to its multi-monthly/yearly lows.
Taking a view of the short-term price movements, the bearish pull from the $14.4-level led the alt to lose more than 48% of its value. As a result, the altcoin tumbled to its 16-month low on 12 May. The $8-support propelled a bullish toward the Point of Control (red). Now, immediate testing support for the bears stood at the $9.83-level.
At press time, DOT was trading at $10.71. The RSI has been gliding near its mid-line while taking a neutral stance in the four-hour timeframe. Any close below the 44-mark could be detrimental to the short-term recovery prospects.
Near Protocol (NEAR)
As the ongoing narrative for NEAR visibly skewed in favor of bears, the sellers found fresher grounds to rest on over the last few weeks. After dropping towards its eight-month baseline at the $5.7-level, NEAR bulls forced an upswing that the sellers finally negated in the 23.6% Fibonacci resistance.
With the bears keeping a regular check on the alt’s peaks and lows, NEAR lost nearly half its value after reversing from its 61.8% level and dropping toward its 35-week low on 12 May. With a visible selling edge in the current market, buyers found it challenging to uphold the price above 20 EMA (red).
At press time, NEAR was trading at $6.711. Resonating with other alts, NEAR’s RSI saw slight improvements after bouncing back from the 35-mark. But its south-looking tendencies could cause an undesired delay in the revival process. Nevertheless, the CMF would affirm a bullish divergence if it bounces back from its trendline support.
As the bears refrained from giving up their advantage, Algorand (ALGO) was on the back foot for the last few months. After dropping from the 38.2% Fibonacci hurdle, the altcoin swooped down to register a 56.9% decline toward its 15-month low on 12 May.
Over the last few days, the recent recovery transposed into a bearish pennant pattern on the four-hour timeframe. Any close below the lower trendline of the pennant could hint at an extended bear run toward the $0.38-$0.4 range. At press time, ALGO traded at $0.448, down by 3.03% in the last 24 hours.
Biggest Movers: LUNA Falls To 6-Week Low, As ALGO Surges 15% On Saturday
Despite Terra buying $1.5 billion worth of BTC this week, LUNA slipped to a six-week low to start the weekend. Overall, crypto markets remained in the red, however ALGO was one of the rare exceptions to record significant gains.
ALGO was easily one of the biggest gainers during Saturday’s session, as prices rose by as much as 15% on the day.
Following yesterday’s low of $0.63, ALGO/USD rallied to an intraday peak of $0.745 to start the weekend.
The surge saw prices move from long-term support of $0.65, to now hovering marginally below resistance of $0.75.
This current ceiling hasn’t been properly broken since March 21, when prices made their way to a high of $0.95.
Although bulls will be hopeful of a break above this current resistance, there remain some notable obstacles in the way.
Once of which being the current resistance level in the 14-day RSI of 52. However, should this be cleared, we will likely see an influx of ALGO bulls.
Despite continuing to buy billions of dollars worth of BTC for its reserves, LUNA fell for a third straight day on Saturday.
This latest drop saw prices fall to an intraday bottom of $72.34, which is the lowest point prices have hit since February 28.
Following a false breakout of resistance at $86 on Thursday, bears have continued to pile on the pressure on LUNA/USD, with today’s fall moving below support at $78.
As of writing, the $72 level seems to be acting as an interim floor, with the bullish engulfing candle that followed February’s low a key reason why some traders are optimistic.
Although we might not see a $20 surge in price as seen on that occasion, if this does mature into being a firm floor, it could help inspire more LUNA bulls to return.
Why haven’t we seen any sizable gains in LUNA despite it building reserves with BTC? Let us know your thoughts in the comments.
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in 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.
Reasons why Algorand [ALGO] traders shouldn’t be disappointed in short-term
FIFA announced Algorand as its new official sponsor. The token had been struggling to get rid of bears, however, now it’s being anticipated that the announcement might help ALGO in ways more than one.
History in the making?
Mainstream adoption is possible only through partnerships with popular mainstream companies or brands. But crypto found its way through sports partnerships and made it big in a very short frame of time.
The latest recipient of the same is Algorand which has teamed up with FIFA to agree on a sponsorship and technical partnership deal. With this deal, Algorand will become the official blockchain platform of FIFA and provide the official blockchain-supported wallet solution.
BREAKING: @FIFAcom has announced #Algorand will become the official blockchain of FIFA, empowering the global football community with cutting-edge, sustainable technology. Read more 👉 https://t.co/LTTUqGNLNA @FIFAWorldCup #FIFAWorldCup pic.twitter.com/LuEFTY3WK6
— Algorand (@Algorand) May 2, 2022
In addition to this, the blockchain will also be a regional supporter in North America and Europe and a FIFA Women’s World Cup Australia and New Zealand 2023 official sponsor.
The announcement of this deal came just at the right time as less than 72 hours ago from 3 May, ALGO was trading at a 15-month low of $0.56. Since then, ALGO rose by 7% in two days. Fuelled by the deal, on 3 May, ALGO shot up by 14%, even touching 23% at one point.
This news will help the ALGO holders significantly to get out of the losses they have facing for quite some time. Of the 11.7 million addresses which hold ALGO in their wallet, about 96.6% of them (11.36 million) are suffering losses.
Barely 3% of them are doing good, but these 353k investors are not enough to imbue unconditional, never-ending optimism in the other 96%.
This is why more investors are looking to sell their ALGO holdings. Investors don’t look interested in buying ALGO right now. In fact, sell orders in the market exceeded the buy orders by almost one million ALGO.
However, eventually, Algorand can observe rising investors’ interest in the coming days because of its growing popularity. Owing to the FIFA deal, the network is dominating the social channels, commanding 2.6% of the crypto traffic.
Big33 days ago
Snoop & Gary Vee Got “Ownership” Of A Basketball Team With Ice Cube’s BIG3 NFTs
Bitcoin3 days ago
Veteran Investor Mark Mobius Expects Bitcoin To Fall Further — Cautions Crypto Traders Against Buying The Dip
Bitcoin3 days ago
US, UK, Canada, Australia, Netherlands Share Crypto Criminal Leads, Including A Potential $1B Ponzi Scheme
Crypto news5 days ago
Terra’s Rescue Plan: $1.4B UST Set To Burn, While 240 million LUNA Being Staked
Congress2 days ago
SEC Commissioner Expects Tighter Stablecoin Regulation — Yellen Says Stablecoins Not Real Threat To Financial Stability
Cryptocurrency3 days ago
How Much Money Could You Make From Investing In Uniswap (UNI), Monero (XMR), And Quitriam Finance (QTM)?
Uncategorized6 days ago
Is Terra (LUNA) Dead?
Biden4 days ago
Rich Dad Poor Dad’s Robert Kiyosaki Plans To Buy Bitcoin When The ‘Bottom Is In’ — Says It Could Be At $17K