Algorand Price Prediction as ALGO Forms H&S Pattern
- Algorand price has struggled in the past few weeks.
- The coin has formed a head and shoulders pattern on the 4h chart.
Algorand price remained in a tight range as cryptocurrencies continued moving sideways. The ALGO token is trading at $0.3320, which is about 12% below the highest point in July and is about 20% above the lowest point in June. Its market cap has jumped to more than $2.3 billion, making it the 32nd biggest cryptocurrency in the world.
Ecosystem challenges remain
Algorand is one of the many blockchain networks seeking to become a leading competitor to Ethereum. It is a proof-of-stake network that has high speeds and a significantly lower carbon footprint The network has an average block time of less than 5 seconds. It has over 26.4 million active addresses.
Algorand has been used to build applications in industries like decentralized finance (DeFi), non-fungible tokens (NFT), gaming, and the metaverse. Some of the top applications in the ecosystem are Folks Finance, Algofi, Pera Wallet, and Yieldly among others.
However, Algorand’s ecosystem has not grown as fast as other networks. For example, according to DeFi Llama, the total value locked (TVL) in the ecosystem is just $198 million. Algofi, the biggest application in the ecosystem, has a market dominance of 44%.
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A look at DappRadar shows that the volume of most projects in its ecosystem like Humble DeFi, Octorand, Yieldly Finance, and Tinyman has dropped sharply recently.
Meanwhile, there are some challenges in the ecosystem after the CEO, Steven Kokinos announced his resignation. He will step down from Algorand but will continue working in other projects in the ecosystem. It is unclear which projects he will continue working on.
Algorand price prediction
The four-hour chart shows that the ALGO price dropped to a low of $0.2750 in June this year. Like other cryptocurrencies, it started rising in July. Along the way, the coin formed an ascending trendline that is shown in green.
Algorand remains above this trendline, which is also the neckline of the head and shoulders pattern. It is also consolidating along the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved to the neutral point at 50.
Therefore, there is a likelihood that the coin will likely continue falling as sellers target the key support level at $0.300.