ALGO Price Prediction: Will Algorand Cross The $2 Level?
Aiswarya Gopan • 2 min read
Algorand (ALGO) is one of the exciting movers to keep an eye on today as it climbs higher, supported by multiple developments indicating rising institutional interest in the cryptocurrency, despite it sliding down in rankings to become the 21st largest crypto by market cap. At the time of writing, ALGO/USD is trading around $1.90.
Algorand Gaining Favor Among Institutional Investors
One of the biggest announcements powering the bullish moves is venture capital firm Borderless Capital launching a $500 million fund for digital assets and dApps on the Algorand blockchain. According to the firm’s founding managing partner, it is the best blockchain technology and software available in the market and has a solid potential for growth in the future. The ALGO Fund II is the second offering and follows the first such fund launched in June 2019, which raised $200 million.
Algorand will also be the first strategic partner for Hivemind Capital, a crypto investment fund started by former Citigroup executive Matt Zhang and valued at $1.5 billion. As the first named partner of the initiative, the network will develop the underlying infrastructure for the fund to deploy its capital across several verticals, including blockchain protocols, open internet, metaverses and more.
ALGO to Rise as Adoption of Ecosystem Grows
In terms of adoption, Algorand’s ecosystem could soon enjoy quite the surge in activity after the recent partnership with Pocket Network, which will bring over 10,000 decentralized global node runners into this blockchain. Pocket’s node runners will support the Algorand infrastructure with the centralized RPC support for wallets, block explorers, dApps and other applications that require privacy-centric connection to the ecosystem.
Investors also seem to believe in the potential of dApps on this blockchain, with AlgoFi – a high speed, low-cost lending market and stablecoin protocol developed on Algorand’s infrastructure, successfully raising $2.8 million in seed funding at the blockchain’s annual community conference. The Algorand protocol can offer transactions at less than $0.01, offering far higher levels of scalability and versatility for its users.
Its FutureFi tag has seen UNLOX launching five new marketplaces focused on driving up the adoption of Blockchain technology among corporates. Developed on the Algorand blockchain, UNLOX in partnership with NAX and Skybridge will offer dApps focused on a BNPL platform to mint consumer finance loan NFTs; exchange for warranties to tokenize excess risk in manufacturers’ captive insurance company; securitizing assets from art insurers for lending, fractionalization and trading; a digital asset exchange and commerce engine; as well as a curated selection of NFTs in partnership with Spin Magazine for its most iconic photography and cover art. The blockchain will soon see a significant uptick in user activity which could keep the ALGO price supported in the coming weeks and months.
ALGO/USD Technical Analysis
On the 4-hour chart of ALGO/USD, moving averages and the MACD are exhibiting a strong bullish bias among investors. However, the momentum indicator and te Stochastics RSI suggest some selling interest in the market.
Algorand’s price is holding above the pivot point at $1.71 and has crossed the immediate resistance at $1.86 as well. The next hurdle will be the psychological level at $2 and the second resistance almost immediately after at $2.01.