Algorand Price Down by 4.4% – Time to Buy ALGO Coin?
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- Algorand community had a bad start to the new year as the network was attacked on January 1, 2022.
- Algo has announced a reward program of $3 million with the partnership of the Algorand Foundation.
- Algorand coin prediction remains bullish above the $1.726 support level.
Algorand is trading with a bearish bias, having plunged by 4.4% to trade at the $1.754 level. On the 2-hour chart, the ALGO/USD coin is gaining strong support at the $1.726 level. A day before, the ALGO/USD closed at $1.7916 after setting a high of $1.8349 and a low of $1.6273. The currency pair, ALGO/USD, has been moving sideways for several days. It rose to its highest level on Monday since December 6th.
Algorand’s DeFi platform Tinyman was exploited for $3m.
The Algorand community had a bad start to the new year. The decentralized trading platform Tinyman, developed on the network, was attacked on January 1, 2022. This comes after a year of increased theft in which more than $10 billion was lost due to DeFi scams and hacking. Tinyman has now described the tragic hack that cost the DeFi platform approximately $3 million.
The attacker was able to exploit some flaws in the network’s smart contracts. That allowed them illegal access to pools through which they could extract tokens. This “resulted in a depletion of specific ASAs in the first hours of the attack, which contributed to higher volatility in the immediate aftermath,” Tinyman’s team said, adding that the attack was being investigated further.
Early prediction of attack:
They did offer an early prediction of the attack, implying that the first criminals registered their wallet addresses and transferred a seed fund for the breach. This was followed by transactions with the targeted pools, token swapping, and the minting of pool tokens.
The bug was attacked by burning the pool tokens, resulting in the hackers receiving two of the same assets rather than two separate assets. The attackers continued to burn and trade money over the course of 17 transactions until they had stolen funds worth about $3 million at the time of withdrawal.
The network also stated that many additional wallets were now exploiting this problem, warning that “those people could be deemed as responsible as the first attackers.” Due to the network’s entirely decentralised nature, all users were instantly urged to withdraw their liquidity from any Tinyman-related contracts, as none of them could be revoked or halted. The network’s remaining liquidity was roughly $5 million, down from around $43 million earlier.
The affected users will be reimbursed by the team and will be compensated. However, they were instructed not to make any transactions on the blockchain for the time being. This news should have had a negative impact on the ALGO/USD prices, but the currency remained green for the day.
Algorand incentive program
The ALGO/USD could be on an upward track due to the launch of a reward program. Algo is a decentralized finance platform that relies on smart contracts to offer users low-cost lending and borrowing services. In addition, Algo has announced a reward program of $3 million with the partnership of the Algorand Foundation. Under this incentive program, the users of Algofi will algorithmically earn ALGO rewards when they borrow and lend ALGO and the STBL and USDC. This news has been keeping the momentum green surrounding the ALGO/USD cryptocurrency.
Daily Technical Levels
Support Resistance
1.6677 1.8753
1.5437 1.9589
1.4601 2.0829
Pivot Point: 1.7513
Algorand technical outlook – Upward trendline to support at $1.726
Algorand coin prediction remains bullish above the $1.726 support level. On the 2-hour timeframe, the ALGO/USD coin has closed Doji and spinning top candles that suggest weakness in a bearish bias. Therefore, the odds of an uptrend remain strong during the late European session.
At the moment, the ALGO/USD is trading at the 1.757 level. A spike in demand could lead its price towards the next resistance level of the 1.847 level. The breakout of this resistance can lead the ALGO price further higher towards the next resistance area of 1.940.
Speaking of the leading and lagging technical tools, the RSI and Stoch RSI are shifting direction from bearish to bullish. While the 50-day exponential moving average is likely to support Algo around the 1.700 mark. Lastly, the upward trendline is supporting the chances of an uptrend continuation in ALGO/USD. Therefore, the bulls can take control above $1.726.
What’s next?
On the flip side, a surge in selling pressure can trigger a breakout of the $1.726 support zone. Below this, the coin may find immediate support at $1.639 or $1.545. Thus, the trader’s focus will be on the $1.726 support level, as the violation of this will help us capture a quick sell trade and vice versa.
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