Algorand stays one of many prime blockchain networks because of its give attention to innovation and sustainability. However, its native cryptocurrency ALGO has had higher days and is at present buying and selling in a crucial price level.
ALGO traded at $0.70 at the time of writing and has been on a bearish efficiency for the reason that begin of April, after peaking at $0.98 on 31 March. However, its month-to-month low cost pales in comparison with its $2.82 ATH that it achieved in November final yr. This means its current price is at present buying and selling at roughly a quarter of its ATH price.
Zooming out on ALGO’s price tag reveals that it has been buying and selling in a triangle sample underpinned by descending resistance and lateral help. Its end-of-March peak brushed in opposition to the resistance line earlier than retracing and retesting help on 14 April. ALGO is at present in a crucial zone because the help and resistance line squeeze the price into a slim range.
Why ALGO’s current help is crucial
ALGO’s current help stage close to $2.11 has to this point proved to be fairly a robust reversal level. It has bounced again from the identical stage a number of occasions to this point this yr and at least 3 occasions in 2021. This signifies that it has already been established as structural help and the final time it was under this important stage was in February 2021.
ALGO is likely to be due for a vital upside particularly if the identical help stage holds robust within the subsequent few days. The chance of such an end result is additional enhanced by the heavy low cost that it is buying and selling at in comparison with its earlier ATH.
However, it may additionally break by way of help as has been the case with a lot of the prime cryptocurrencies on account of intensified promoting strain in the previous couple of days.
Algorand’s on-chain exercise
Market forces at present have a heavy hand in ALGO’s current worth. However, its on-chain actions additionally play a crucial function not solely in its current worth but in addition its future price motion. The NFT market is among the many key utility drivers that may assist gauge the extent of exercise on the Algorand blockchain.
The variety of distinctive addresses that bought lower than $1,000 value of NFTs have persistently stayed above 13,400 within the final 90 days. NFT commerce volumes have elevated considerably from mid-March.
The complete quantity of NFTs value greater than $100k registered a noteworthy uptick within the final 2 days as costs dipped decrease. Looking again over the past 12 months reveals that NFT volumes registered vital progress throughout this era.