Algorand Price Up 38.8% – Time to Buy ALGO Coin?
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With the crypto market currently in a downturn, investors are especially impressed by ALGO’s exponential growth. The digital asset has been bullish all day and has surged over 30% in the last 24 hours. Such an unusual upward trajectory has got several investors interested in the cryptocurrency.
However, before you buy ALGO, you should understand the protocol’s value proposition and impact on the blockchain ecosystem. This article addresses this and more and lets you know if this might be a great time to buy ALGO.
Algorand: A Blockchain for the 21st Century
Algorand is a high-performance blockchain that has become popular in 2021. With a strong throughput and equal distribution of its ALGO token, the blockchain protocol has received growing interest. The network looks to solve the blockchain trilemma by applying the proof-of-stake (PoS) mechanism.
Like many competing blockchain platforms, Algorand supports the development of decentralised applications (dApps). The blockchain is built to be fast and scalable, with over 1,000 transactions per second (TPS recorded.
Algorand’s use of PoS mining protocol makes it ideal for decentralised finance (DeFi). Given the low energy process of confirming transactions on the blockchain, network fees are also less expensive than on the Ethereum network. The blockchain is also useful for running smart contracts, handling atomic swaps, and even creating Algorand-based assets – known as ASAs.
Algorand has a block finalisation time of 4.5 seconds, and the development team is working on further reducing this to 2.5 seconds. Alongside this, the network’s throughput is expected to surge from 1,000 TPS to 46,000 by the end of the year. The ALGO token is used for transactions and micropayments, and it is also used for staking.
ALGO: Price Movements in 2021
ALGO has had a banner year so far. The asset was not so popular last year, but it saw its price skyrocket going into 2021 as coins across the board surged in the opening quarter of the year. ALGO began 2021 at $0.39, and the digital asset has risen significantly over time.
It hit a high of $1.83 on February 12. However, the token could not sustain this price action, and it dipped and traded above the $1 mark.
With the crypto market taking a major hit following China’s ban on crypto mining, ALGO dropped below the dollar mark finding support at $0.91. But, the downturn didn’t stop there. ALGO continued to slump over the next few months, eventually bottoming out at $0.67 on June 22.
The three-month bearish trend saw ALGO drop 63.3 percent from its previous high. The digital asset could not cross the $1 mark until the end of August.
Over the last few days, ALGO has been on a tear. The asset has risen by 115 percent in the past month, moving from $0.86 to a current price of $1.85. This is after it hit a high of $1.89 in the early hours of today. This means that ALGO may be eyeing a new all-time high.
With that price peg, ALGO is up by 38.8 percent in the past day and 58.58 percent in the past week. This could be a great time to buy ALGO given its strong bullish push.
ALGO Technical & Fundamental Analysis
On the trading chart, ALGO is showing resilience and battling against the bearish undertone that envelopes the crypto market at the moment. The asset’s price is holding well above its 20-day moving average (MA) of$1.17 and its 200-day MA of $1.08. Most of that is due to the asset’s performance in the past week, which already has investors very excited.
The coin also holds a very strong relative strength index (RSI) and is trading at the overbought region of 76.07. This shows that investors want to buy ALGO as they look to stay profitable despite the market correction.
On the fundamental front, Algorand has been making strategic moves. The blockchain has seen significant institutional adoption, with Arrington Capital and Borderless Capital investing $100 million and $25 million to the project.
Algorand was also recently selected to help build the infrastructure for El Salvador to accept Bitcoin as a legal tender. The company would join Latin American crypto exchange Bitso, crypto bank Silvergate Bank and Athena.
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