- Algorand price has plunged to the lowest level in over two years.
- It has crashed despite the company’s bet on the World Cup tournament.
Algorand price has been in a freefall during the most anticipated World Cup season. ALGO plunged to a low of $0.20, the lowest level since July 2020. It has crashed by more than 92% from its highest point this year.
World Cup investments fail to pay off
Algorand is one of the biggest blockchains in the world. As part of its marketing and growth strategy, the developers partnered with FIFA a few months ago. This partnership saw Algorand’s logo visible in some of the biggest matches in the games.
FIFA also created its FIFA+ NFTs using Algorand’s technology. However, early indications show that these investments have not paid off as was expected. ALGO has plunged to the lowest level in more than two years.
Further, Google Trends data show no meaningful change in Algorand search volume. Now, with the World Cup ending, there are concerns that ALGO could fall further in the coming weeks.
Algorand has also struggled as investors focus on the slowing activity in its DeFi platforms. According to DeFi Llama, the total value locked (TVL) locked in Algorand has been in a downward trend during the World Cup.
Find out how to buy Algorand.
After peaking at over $300 million, the TVL in the ecosystem has crashed to a low of $164 million. Algofi’s TVL has plunged by 23% in the past 30 days while Folks Finance, Tinyman, Pact, and Humble DeFi have dropped by more than 20% in the same period.
On a positive side, Algorand was selected by the Bank of Italy and other financial institutions to be the public blockchain that will support a new digital collateral platform in the country. The platform will be launched in early 2023. Once launched, it will be the first time that a major EU member has allowed the use of blockchain in insurance guarantees.
Algorand price prediction
The daily chart shows that the ALGO price has been in a freefall in the past few months. This sell-off has accelerated during the World Cup event and is now hovering near its lowest level in over two years. It has also fallen below all moving averages while the Relative Strength Index has dropped to the oversold level.
Therefore, all signs are that Algorand price will remain under pressure for a while. If this happens, the next key support level to watch will be at $0.200 followed by $0.15. This view is in line with my previous Algorand forecast.
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