The Algorand price bucked the trend on Wednesday. As other popular cryptocurrencies and altcoins crashed, the token jumped to almost its all-time high. The token is trading at $1.688, which is about 10% below its all-time high of $1.8610. This rally brings its total market capitalization to more than $5.8 billion, making it the 29th biggest cryptocurrency in the world.
ALGO spared from the crypto meltdown
It was a sea of red in the cryptocurrencies market on Wednesday as investors rushed for the exit. This sell-off was triggered by news that El Salvador had finally made Bitcoin its legal tender. The government has already installed hundreds of Bitcoin ATMs and bought Bitcoin worth more than $20 million.
Therefore, the current sell-off is mostly because of a market phenomenon known as buy the rumor, sell the news. This is where investors buy an asset towards a major event and then exit after it materializes.
The same thing happened a few months ago when Coinbase held a direct listing in New York. At the time, the price of most cryptocurrencies rose and then retreated after the company went public. Another example is when Dogecoin surged to an all-time high ahead of Elon Musk’s appearance at the Saturday Night Live (SNL).
The Algorand price is defying odds as investors remain optimistic about the ecosystem. For example, last week, the developers announced that Koibanx had signed a deal with El Salvador’s government to develop its blockchain technology. This was notable since this technology will ne built on Algorand’s platform
Additionally, ZestBloom, a company dealing with Non-Fungible Tokens (NFT) moved to Algorand’s network. This is notable since the industry of crypto art has jumped from about $40 million in February this year to more than $400 million in mid-March. Other top platforms building on Alforand are Circle, IDEX, Republic, and Meld Gold.
Algorand price prediction
The daily chart shows that the ALGO price formed a triple-bottom pattern at $0.6647 in May, June and July. The coin then rebounded in late July and has surged by more than 155% since then.
A closer look at the chart shows that it moved above the neckline of the inverted head and shoulders pattern. It also rose above the 25-day and 50-day moving averages.
Notably , the coin is a few points below the all-time high of $1.6811. It is also forming a cup and handle pattern, which is usually a sign of bullish continuation.
Therefore, the path of the least resistance for the Algorand price is to the upside as bulls target its all-time high. After this, the coin will likely retreat to form the handle section and then bounce back higher.
