Algorand (ALGO) Plummets despite Sturdy Fundamentals

ALGO appears to reverse its bullishness from the past sessions. That had it losing some of the additions recovered as the market saw profit-taking towards the weekend. While writing this content, ALGO/USD trades near $1.74.

Algorand has seen money-making moves in recent days, boosting its fundamental developments. For instance, the crypto network made a $100m deal by obtaining title rights with DRL (Drone Racing League) for a five-year duration. That came almost one week after Algorand partnered with Le Mans Virtual and some weeks after sponsoring the 2022 Chess Prix Series.

Besides the sports deals, ALGO has received backing from the DeFi portfolio launch by eToro. The leading cryptocurrency trading platform declared a portfolio comprising eleven decentralized financial tokens, including Algorand. Such news might trigger increased interest in ALGO, especially from eToro clients interested in the DeFi sector.

Other developments that might support the altcoin rally involve the derivatives markets. Bitfinex crypto exchange’s derivatives platform, Bitfinex Derivatives, recently introduced perpetual contracts for the alt. It also launched similar services for Bitcoin and XRP. With that, ALGO investors using the exchange will access leverages of up to 100-times. That is an attractive development for expert investors.

Also, the Algorand blockchain has seen increasing adoption among NFTs. For instance, ZestBloom introduced an eco-friendly non-fungible tokens market on the ALGO network. The platform promised its users minimum transaction charges (not more than $0.001), high security and no forking, and less carbon footprint.

Levels to Watch

According to ALGO/USD’s four-hour chart, most MAs and the momentum indicator exhibits massive bullishness. However, the 200 Simple Moving Average and the 200 Exponential Moving Average plus the MACD indicate buyers’ interest.

Algorand has its price actions well under the pivot level around $2.12 and appears ready to test the nearest support at $1.70 in the upcoming sessions. Any move under this level can translate to plummets beneath $1.50 towards the 2nd support near $1.44.

On the other side, the crypto market trades in red after the recent announcement by China, citing cryptocurrencies as threatening elements. Such actions had Bitcoin losing over 5% to stand near $41,557.