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Algorand (ALGO) Still Struggling to Cross The $2 Level

Algorand (ALGO) Still Struggling to Cross The $2 Level

Posted Monday, November 15, 2021 by
Aiswarya Gopan • 2 min read

Algorand (ALGO) is on a bit of a slide, despite rising interest in the cryptocurrency amid both investors and developers, with investors struggling to take the price past the key $2 level. At the time of writing, ALGO/USD is trading around $1.95.

As one the leading PoS based-blockchains, Algorand already has the power to become a potential Ethereum killer, touting higher levels of energy efficiency and improved transaction processing capabilities than the current leader in the DeFi space. It could be one of the key reasons for the cryptocurrency’s market cap to rise steadily over the last few months, taking it from around the 50th position into the top 20 cryptos till date. Calling itself the “future of finance” (FutureFi), it shot into fame a few months ago after El Salvador tapped its infrastructure as the official blockchain project powering the country’s move to making Bitcoin legal tender.

With a pure proof-of-stake consensus mechanism, the Algorand network was always designed with sustainability in mind – a factor that is slowly rising into prominence in the world of blockchains, with several experts criticizing market leaders Bitcoin and Ethereum for their energy-intensive proof-of-work mechanisms. According to its founder Silvio Micali, running a node on the blockchain can be done from a low-powered computing machine, unlike Bitcoin and Ethereum which require devices with high power.

It is no wonder then that Swiss-registered Watr Foundation has selected Algorand as its partner to create an ESG-oriented blockchain for commodities. The Watr Protocol aims to digitize supply chains which will bring DeFi capabilities into the world of commodities, offering a higher level of transparency and decentralization towards procurement and investment in commodity supply chains.

Former White House Director of Communications and founder of SkyBridge Capital Anthony Scaramucci is an example of a serious investor who believes strongly in the potential of cryptocurrencies and especially Algorand. According to him, ALGO and ETH have the potential to rally exponentially in the long term and even overtake BTC on account of their strengths in security and scalability.

ALGO/USD Technical Analysis

Taking a look at the H4 price chart of ALGO/USD, smaller moving averages along with leading technical indicators MACD and momentum reveal a bearish bias. Although, the larger timeframe MAs 100 EMA and 200 EMA point to some buying interest as well.

Algorand’s price sits under the pivot point at $1.95 but the immediate support at $1.76 is holding up well. Keep an eye on the price action around the key $2 mark as a boost above can raise buying interest and take ALGO past the pivot point.

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