Algorand (ALGO) Slides Down Despite Strong Fundamentals
Algorand (ALGO) is reversing its bullish moves from the previous session, giving back some of its gains from the recovery in the market sentiment amid profit taking by investors as the week draws to a close. At the time of writing, ALGO/USD is trading around $1.74.
Algorand has had a busy few days in terms of fundamental developments lately, striking a $100 million deal for acquiring the title rights with the Drone Racing League (DRL) for a period of five years. This latest deal comes a week after the blockchain became one of the official series partners of Le Mans Virtual and a few weeks after it sponsored the 2022 World Chess Grand Prix Series.
Beyond the world of sports sponsorships, the ALGO token is enjoying support from eToro‘s recent launch of a DeFi portfolio. The world’s leading social trading platform announced the portfolio consisting of 11 DeFi crypto assets including Algorand. This development could spur further interest in the cryptocurrency among investors, especially eToro users looking to dip their toes into the world of DeFi safely.
In another development that could boost Algorand’s appeal among investors, derivatives platform of leading crypto exchange Bitfinex, Bitfinex Derivatives, recently launched perpetual contracts for the cryptocurrency, along with similar offerings for Ripple’s XRP and Bitcoin. This will offer Bitfinex users up to 100x leverage while trading ALGO on the platform, making it an attractive instrument to trade for professional investors.
The adoption of its blockchain network is also on the rise, especially among NFT projects as well. ZestBloom recently announced the launch of its eco-friendly NFT marketplace on the Algorand blockchain. The platform promises ultra-low transaction fees of less than $0.001, minimal carbon footprint, high security and the benefit of no forking as well.
Key Levels to Watch
On the 4-hour chart of ALGO/USD, most of the moving averages along with the momentum indicator are exhibiting a strong bullish bias. However, the 200 EMA and 200 SMA as well as the MACD suggest some interest among buyers as well.
Algorand’s price is well below the pivot point at $2.12 and looks set to test the immediate support at $1.70 soon. A breakdown of this level can cause a tumble below $1.50 until the second support at $1.44.
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