- Algorand price has been in a strong bearish trend for months.
- The sell-off accelerated last week after the LUNA crash.
- It has formed a bearish break and retest pattern.
The Algorand price has been in a narrow range in the past few days as investors reflect on the state of the cryptocurrency industry. ALGO is trading at $0.4880, which is about 42% above the lowest level last week. As a result, the coin’s market cap has moved to about $3.2 billion, making it the 28th biggest cryptocurrency in the world.
ALGO price action explained
Algorand is one of the biggest layer 1 projects in the world. It is a leading platform that seeks to become a viable alternative to Ethereum. Its platform is significantly faster than Ethereum considering that it can process over 1,000 transactions per second (tps).
Algorand also boasts of its climate change credentials. It uses technology to offset all carbon that is offset in its ecosystem. Further, applications developed in Algorand are easier to use and more interoperable.
Algorand has been used to build hundreds of decentralized applications (dApps). Some of the biggest apps in its ecosystem are Folks Finance, AlgoLaunch, Venus One, and OpenFabric among others.
In April, the Algorand Foundation announced that it had inked a deal with FIFA. This deal will see Algorand advertise in the upcoming World Cup event in Qatar. This is a notable announcement considering that World Cup is one of the biggest events globally. Several games, such as finals are watched by billions of people.
Learn more on how to buy Algorand.
While Algorand has had some success, the price of ALGO has not been all that good. For one, the ALGO price has tumbled by over 85% from its all-time high.
It is facing additional challenges. For example, a closer look at its transaction count shows that it has been in a downward trend. Additionally, competition in the industry has been rising, with platforms like Avalanche and Cronos has grown. Most importantly, the recent collapse of LUNA has pushed more people away from crypto.
Algorand price prediction
The ALGO price declined sharply after the latest crash of Terra. At the time, the coin crashed to a low of $0.3442, which was the lowest level since last year. The coin managed to move below the descending channel that is shown in black.
Now, the coin has moved back and retested the lower side of this channel. It has also moved below the 25-day and 50-day moving averages. Therefore, there is a likelihood that the coin will resume the bearish trend in the coming days. If this happens, the next key support will be at $0.4130.
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