Algorand Faces Steep Fall; Down by 1/3rd of Its Value in 3 Weeks
Its ALGO cryptocurrency validates Algorand blockchain has been under work since 2012, but the protocols or functions were not worked on till 2019. After raising over USD 122 million through various VC funding rounds and ICO, the project went live in June 2019, scaling its network to almost 1 million transactions in December 2020.
Algorand is owned by a not-for-profit organization, the Algorand Foundation, and uses a unique algorithm called pure-proof of stake. Pure proposes to solve the blockchain issues of scalability, security, and decentralizing. In pure proof of stake, relay nodes randomly select a participation node to propose a block.
The probability of selecting a participation node is partially proportional to the number of ALGO cryptocurrency the network has staked. The minimum stake required for the participation node is 1 ALGO, which rewards up to 5% per year with no lockout period.
ALGO coin is used for paying transaction fees, staking and can be soon be used for governance. The Algorand ecosystem is slowly growing, with more and more projects running on the back of this cryptocurrency network. However, ALGO ranks at 16th position with a little less than USD 10 billion market capitalization.
Algorand Price Analysis
ALGO coin has made a sharp up move following September 07 profit booking because of a new staking scenario making its bid. But after hitting a high of $2.4, it has become a victim of profit booking, pulling down the value to $1.65.
ALGO cryptocurrency has a distinct price pattern that consolidates for a longer duration before giving a breakout. But the staking mechanism of its tokenomics has made it really easier for one to predict the price movement. As a result, ALGO is more likely to take support from its 200 DMA line and consolidate before moving upwards to $3.
At present, the RSI levels have dipped from positive sentiment toward neutral zones. And as per our Algorand price prediction, it is expected to fall a little more till the time increased volumes either regularize or wade off.
ALGO cryptocurrency token is headed downwind in a consolidative range and should ideally take support from $1.20 levels. Ideally, it should fall a little close to 50% from its all-time high in the form of profit booking before showing any sign of slowing down. The unique nature of its blockchain adds a very high value to its potential to upscale. Still, the time frame will be upside movement, profit booking consolidation, and repeat this cycle.