Will the partnership be enough to pave the way for the ALGO rally?
The market-wide decline has had many implications for ALGO‘s development. At the time of writing, this altcoin is recovering from the recent BTC rally.
Amidst institutions actively investing in cryptocurrencies, Algorand won a number of high profile partnerships over the past year. This means that the coin in 20th place always remains in the media spotlight in terms of market capitalization. In addition, ALGO’s social volume remains high despite recent regulatory measures.
But the question is, will that be enough for a strong rebound?
ALGO 4 Hour Price Chart | Source: Tradingview
Partnership and ecosystem development
Over a month ago, the Algorand Foundation announced the launch of the Algorand Virtual Machine. This is a powerful tool that supports the ecosystem of building decentralized applications. This makes Algorand a heavyweight in the Layer 1 platform race.
In addition, Algorand launched a $ 300 million DeFi fund in September that is focused on introducing innovative DeFi-centric protocols while supporting infrastructure and applications while promoting the utility, liquidity and growth of the ecosystem.
By building a strong DeFi ecosystem through partnerships, the platform received strong interest from institutions. Recently, at its inauguration, Matt Zhang founded Hivemind Capital Partners announced a $ 1.5 billion venture capital fund to invest in blockchain and digital asset ecosystems. In fact, Hivemind has selected Algorand as a strategic partner to provide technology and infrastructure for the network ecosystem.
It should be noted that from time to time the large volume of ALGO transactions has skyrocketed. It’s a sign that organizations are caring more about it. But will that be enough to keep ALGO’s price rising?
Price promotion still precarious?
ALGO’s annual ROI is + 460.16% versus the USD – which looks impressive. However, it should be noted that this cryptocurrency last reached the ATH in 2019. Since then, she has not managed to break the $ 3 mark, let alone hit a new ATH.
ALGO’s ATH for 2019 is $ 3.24, but during this cycle the price has barely increased to $ 2.80. Despite continued institutional interest, altcoins lack the excitement in retail and active participation in the network – both factors required for rallies.
Interestingly, the number of active and new addresses from ALGO has increased on November 20th. increased, but is currently declining compared to the previous week. While active addresses have dropped from around 163,000 to around 100,000 at the time of writing, new addresses have dropped from over 90,000 to around 50,000 since last week.
Source: IntoTheBlock
Eventually, ALGO’s development activities also fell in the charts.
A boost from developers could be the key factor in the ongoing rally in the short term. Especially since high growth activity often corresponds to local ALGO peaks.
Source: Sanbase
There are currently almost no HODLers in the context of ALGO, which shows that investors have no HODL intent. The little excitement in the trade in connection with the small number of holders may be one of the reasons that the ALGO price has so far developed rather slowly.
In order for this altcoin to get back on track, a price rally above $ 2 is required in addition to support from HODLers and retailers.
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Will the partnership be enough to pave the way for the ALGO rally?
The market-wide decline has had many implications for ALGO‘s development. At the time of writing, this altcoin is recovering from the recent BTC rally.
Amidst institutions actively investing in cryptocurrencies, Algorand won a number of high profile partnerships over the past year. This means that the coin in 20th place always remains in the media spotlight in terms of market capitalization. In addition, ALGO’s social volume remains high despite recent regulatory measures.
But the question is, will that be enough for a strong rebound?
ALGO 4 Hour Price Chart | Source: Tradingview
Partnership and ecosystem development
Over a month ago, the Algorand Foundation announced the launch of the Algorand Virtual Machine. This is a powerful tool that supports the ecosystem of building decentralized applications. This makes Algorand a heavyweight in the Layer 1 platform race.
In addition, Algorand launched a $ 300 million DeFi fund in September that is focused on introducing innovative DeFi-centric protocols while supporting infrastructure and applications while promoting the utility, liquidity and growth of the ecosystem.
By building a strong DeFi ecosystem through partnerships, the platform received strong interest from institutions. Recently, at its inauguration, Matt Zhang founded Hivemind Capital Partners announced a $ 1.5 billion venture capital fund to invest in blockchain and digital asset ecosystems. In fact, Hivemind has selected Algorand as a strategic partner to provide technology and infrastructure for the network ecosystem.
It should be noted that from time to time the large volume of ALGO transactions has skyrocketed. It’s a sign that organizations are caring more about it. But will that be enough to keep ALGO’s price rising?
Price promotion still precarious?
ALGO’s annual ROI is + 460.16% versus the USD – which looks impressive. However, it should be noted that this cryptocurrency last reached the ATH in 2019. Since then, she has not managed to break the $ 3 mark, let alone hit a new ATH.
ALGO’s ATH for 2019 is $ 3.24, but during this cycle the price has barely increased to $ 2.80. Despite continued institutional interest, altcoins lack the excitement in retail and active participation in the network – both factors required for rallies.
Interestingly, the number of active and new addresses from ALGO has increased on November 20th. increased, but is currently declining compared to the previous week. While active addresses have dropped from around 163,000 to around 100,000 at the time of writing, new addresses have dropped from over 90,000 to around 50,000 since last week.
Source: IntoTheBlock
Eventually, ALGO’s development activities also fell in the charts.
A boost from developers could be the key factor in the ongoing rally in the short term. Especially since high growth activity often corresponds to local ALGO peaks.
Source: Sanbase
There are currently almost no HODLers in the context of ALGO, which shows that investors have no HODL intent. The little excitement in the trade in connection with the small number of holders may be one of the reasons that the ALGO price has so far developed rather slowly.
In order for this altcoin to get back on track, a price rally above $ 2 is required in addition to support from HODLers and retailers.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
At home at home
According to AMBCrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
