Until recently, ALGO was one of the few coins that did not follow the overall trend of the market. The price hit a local high on November 18th and is likely to continue its upward trend.
ALGO 4 Hour Price Chart | Source: Tradingview
Interestingly, on November 18, ALGO rose. by more than 75% in just 15 minutes. This step isn’t entirely unexpected as there are multiple triggers.
21Shares recently announced the listing of the Exchange Traded Product (ETP) ALGO on the SIX Swiss Exchange. Immediately after the news got widespread, the asset’s price began to respond positively.
Likewise in another announcement, also on November 18, the Korean stock exchange Upbit Disclosure listed the ALGO token on the KRW market, which means local users can now buy tokens in their local currency.
Together, these factors have had a positive impact on market participants and fueled the “huge” rally.
Break to the prepare for the next race?
Such spikes rarely last long. As expected, ALGO crashed in the charts shortly thereafter. In just 24 hours, this altcoin lost 15% of its value.
Such dramatic price movements triggered the ALGO volatility index. According to Messari data, the index is above 1 (1.02) at press time, pretty close to a 1-month high.
Therefore, unless the curve turns sideways on this chart, ALGO will continue to fluctuate in both directions for the next several hours.
The source: Messari
In fact, the number of large transactions also rose, reaching a multi-month high of 2.1 thousand transactions at the time of going to press. It is therefore clear that market participants are increasingly interested in this token.
The source: IntoTheBlock
Large transactions can be made by either a buyer or a seller. However, if you look at the current order book statistics, the trend becomes clear. Specifically, market participants began to buy again. For example, there have only been more purchases than sales for 322.4k ALGO tokens in the last 6 hours.
In addition, the derivative curve of the FTX is still in the buy delay zone despite the falling price. Hedging is a situation where the futures contract price of an asset is higher than its spot price. The same thing often happens when prices are expected to rise over time.
Given the current mood among market participants, it can therefore be said that ALGO will continue to rise. However, it should also be noted that it will be a long time before the recent record increase of 75% is broken again.
In addition, investors are also interested in the event Decipher Company take place next week. As with any other official event, interested parties including innovators, developers and community members will discuss the future of the network. Positive developments and announcements should also have an impact on the price.
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According to AMBCrypto