In the past week, the entire cryptocurrency industry has witnessed a significant drop. The cryptocurrency industry has continued experiencing a downward momentum. The entire situation has proven to be quite bearish for the entire crypto-verse but some cryptocurrencies have been performing positively.
ALGO Moves to the Positive Side
Despite the bearish momentum recorded in the overall cryptocurrency market Algorand (ALGO) seems to have demonstrated strong performance.
ALGO seems to be moving in the bullish zone as its price has recorded a significant rise in the past few weeks. In the past week, the trading price of ALGO recorded a 20% surge in its value.
Only Chiliz (CHZ) was the cryptocurrency that was able to surpass it in terms of gains in the past week. On the list of top 100 best performing and highest bought cryptocurrencies, ALGO has proven to be quite resilient.
ALGO has earned the second spot in the particular list while Chiliz ranks as the top performer. In the same period, CHZ reportedly experienced a 33% surge in value.
Current Situation of ALGO
At the time of writing, the trading price of ALGO is over the indicators considered the major moving average (MA) for the cryptocurrency.
This means that the moving averages for ALGO would continue growing more bullish and continue moving in the upward direction.
As for the ALGO RSI, it is currently sitting at 58.18, which is also a positive and bullish indicator for digital assets. This means that the investors will have a higher chance of generating gains if they stick with the bullish trend.
This would also mean that the bullish trend would continue for a longer term and it may keep going in the same direction for a long time.
However, it is to be kept in mind that ALGO has entered its overbought zone. This means that at any given time, the bulls may retreat to generate gains from their current investments.
As the price of ALGO continues moving upward, the fear of a huge dip continues rising. The investors may leave the bullish trend at any time which may result in ALGO moving in the negative direction.
ALGO’s Growing TVL and Upcoming Partnership
Despite the fear, there are positive factors inbound that may help push ALGO’s price upward. These factors have the ability to push ALGO to a high of $1.00.
The first factor is the TVL that is rising for ALGO. In the past 24 hours alone, ALGO’s TVL has risen by 4.09% and it currently stands at $422 million.
AlgoFi is reportedly one of the largest liquidity providers of Algorand as they have contributed $100 million towards the platform.
The other factor is the partnership of Algorand with FIFA. As part of the partnership, Algorand will be offering digital collectibles for FIFA dubbed as “FIFA+ Collect”.
The provisioning of the NFTs would help increase demand for ALGO in near future and may help it push up to $1.00 or over the mark.