The Algorand price bucked the trend on Wednesday. As other popular cryptocurrencies and altcoins crashed, the token jumped almost to its all-time high. It is trading at $1.688, which is about 10% below its all-time high of $1.8610. This rally brings its total market cap to more than $5.8 billion. This makes Algorand the 29th largest cryptocurrency in the world.
ALGO remains unscathed by crypto crash
On Wednesday, the cryptocurrency market was a sea of red as investors fled. It was all triggered by the news that El Salvador made bitcoin legal tender. The government has already set up hundreds of Bitcoin ATMs and purchased more than $20 million worth of Bitcoin.
Therefore, the current decline is mainly due to a market phenomenon known as “buy the rumor, sell the news.” This is a situation where investors buy an asset in anticipation of an important event and then bail out after it has occurred.
The same thing happened a few months ago when Coinbase did a direct listing in New York. At the time, the prices of most cryptocurrencies rose and then fell back after the company went public. Another example is Dogecoin, which rose to an all-time high before Elon Musk ‘s appearance on Saturday Night Live (SNL).
Algorand’s share price is defying all odds as investors remain optimistic about the ecosystem. The developers also announced last week that Koibanx has signed an agreement with the government of El Salvador. It’s for the development of blockchain technology. This is especially interesting because the same technology will be built on Algorand’s platform.
In addition, the NFT exchange ZestBloom moved to Algorand’s network. The crypto art went from about $40 million in February this year to more than $400 million in mid-March. Other top platforms on Algorand include Circle, IDEX, Republic and Meld Gold.
Algorand Price Forecast
The daily chart shows that the ALGO price formed a triple low at $0.6647 in May, June, and July. The coin then recovered in late July and has since risen by more than 155% rise.
A closer look at the chart shows the move above the neckline of the inverted head and shoulders pattern. The price also rose above the 25-day and 50-day moving averages.
It is worth noting that 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 least resistance for the Algorand price is to the upside as bulls target its all-time high. After that, the coin will likely pull back to form the handle leg and then head back up.