- Algorand price held steady on Monday as other cryptocurrencies recoiled.
- Focus shifts to the upcoming launch of FIFA+ NFT project.
Algorand price defied gravity in the past few days as the focus shifts to the upcoming interest rate decision by the Federal Reserve. ALGO soared to a high of $0.32 on Monday, which was about 10% above the lowest level since September 19. Its market cap soared to more than $2 billion.
Algorand defies gravity
Algorand is a leading layer 1 blockchain project that aims to become the best platform for developers to build decentralized applications (dApps) in all industries.
It is a platform that touts its green credentials since it went carbon negative a few years ago. The network also supports smart contracts with Turing-complete languages, larger program sizes, more state, and many additional opcodes.
Algorand has been used to build several blockchain products. Some of the top projects in its ecosystem are Algofi, Yieldly, Folks Finance, and Venue One among others. According to its website, some of the newest projects in its ecosystem are Dequency, ANote Music, and Meadow Labs.
Algorand price defied gravity on Monday even as other cryptocurrencies crashed. Ethereum tumbled to $1,300 while Bitcoin crashed below $19,000 for the first time in months. As a result, the total market cap of all cryptocurrencies dropped to $911 billion.
There are several reasons why these cryptocurrencies dropped. First, there are fears about the upcoming meeting by the Federal Reserve. The bank, which will start its meeting on Tuesday, is expected to hike interest rates by 0.75% for the third straight meeting. Historically, cryptocurrency prices drop in a hawkish environment.
Second, they have dropped because of a situation known as ‘buy the rumor, sell the news’ following last week’s Ethereum Merge.
It is unclear why Algorand price has risen sharply in the past few days. A possible reason is the recently announced FIFA+ Collect product that will provide users with the chance to collect digital products. The product will be powered by Algorand’s technology and will be launched this month.
Algorand price prediction
The four-hour chart shows that the ALGO price made a strong comeback on Monday as demand for the coin rose. As it rose, the coin moved above the important resistance level at $0.3100, which was the highest point on August 25.
Algorand has also rallied above the 25-day and 50-day moving averages. However, it has formed what looks like a head and shoulders pattern. Therefore, there is a likelihood that the coin will resume the bearish trend as sellers target the key support at $0.300.
