- Algorand is a decentralized, self-sustaining, blockchain-based network.
- The high-performing Layer 1 token has erased all its gains for today.
- Algorand’s upside potential appears to be capped by the $1.9 resistance level.
Decentralized crypto token Algorand (ALGO) must hold above key support for the price to recover. Moreover, in case ALGO touches and goes below the green zone, the price will drop.
Algorand is a decentralized, self-sustaining, blockchain-based network that helps a wide range of applications run on it. Systems like these are scalable, secure, and efficient, which are all critical for application success in the real world. As a new form of trust, Algorand will support computations that demand reliable performance guarantees.
According to CoinMarketCap, the ALGO price is trading at $1.86 with a 24-hour trading volume of $265,521,075, at the press time.
A critical resistance level causes Algorand to show ambiguity. Algorand’s upside potential appears to be capped by the $1.9 resistance level. ALGO can resume its uptrend only if this price point is decisively closed above.
Algorand’s Make-or-Break Moment
Algorand has been hit by the volatility backlash, and it is one of the altcoins that have been affected by it. In response to a sudden spike in selling pressure, the high-performing Layer 1 token has erased all its gains for today. According to data from Bybt, more than $36.8 million in long and short positions have been liquidated over the last four hours.
ALGO tumbled nearly 7% during this period, falling from an intraday high of $1.86 to a low of $1.81. Despite the price volatility witnessed in the past few hours, Algorand continues to trade above stable support.
According to the 50-day moving average, this cryptocurrency is being held by a significant support barrier. If ALGO keeps doing so, the market may be able to breach the $1.90 resistance barrier and reach $2.54. This optimism is a result of a triangle pattern that has been evident on Algorand’s daily chart since September 13, 2021.
It is important to note that a daily candlestick close below the 50-day moving average at $1.76 could invalidate the bullish thesis and lead to further losses. In addition to triggering investors to exit long positions, a break of this crucial support level will increase selling pressure behind Algorand. Such unique circumstances could cause ALGO to plunge to $1.24, the 200-day moving average.