- The Algorand network grew in 2021 as DeFi activity boomed
The Algo price reached its lowest point at $0.28. However, bullish signals are emerging.
If it breaks through a small resistance at $0.31, ALGO will make a bullish move.
The Algorand’s token ALGO/USD network saw a boom in DeFi activity last year. The network continues to grow despite the bear market. Algorand’s total value was $174.74million as of May 7. As of the end of the year, the TVL has reached a record high of $134.24 Million for 2021. However, the TVL is now at $99.11 million.
Algorand, a proof of stake and scalable blockchain, is available. It provides a platform that allows users to create products and services in a decentralized economic system. Algorand is benefiting from the DeFi growth. The blockchain is powered by ALGO, the native token. Due to growing macro-concerns, the token has fallen this year.
Algorand’s partnership in May with FIFA is a recent development. FIFA announced that Algorand will be the official blockchain sponsor for this year’s World Cup. Algorand will receive media exposure and advertising free of charge as a result of the sponsorship. The announcement saw ALGO rise by double digits. ALGO’s recent weakness highlights a market issue, rather than fundamentals.
ALGO caught between $0.28 bottom & short-term resistance
Source – TradingView
Technically, ALGO has made bullish moves. Bullish momentum is confirmed by a MACD cross-over above the moving average line. Although the price is still below the 21 day MA, the 14-day moving average provides support.
ALGO could continue to consolidate between $0.28 bottom resistance and $0.31 resistance for the foreseeable future. Short-term buying opportunities will be opened if the minor resistance level is broken. If the buying power is weak, ALGO could crash to $0.28 support.
Algorand powers DeFi products, services. The resistance level for its native token ALGO was $0.31. After breaking through the resistance, we project a bullish short-term move. The $0.28 support may be broken and the token could fall again.