ALGO cost at risk of 25% correction despite Algorand–FIFA partnership hype

Algorand (ALGO) prices rallied greater on May 3 after becoming FIFA’s official blockchain solution provider. Nevertheless, the ALGO/USD pair is constantly on the face selloff risks.

High-profile partnership

ALGO’s cost leaped 20% to $.74, its greatest level since April 22. Its move upside came as part of a wider rebound that began April 30, gaining 37.5% in only 72 hours of buying and selling.

ALGO/USD daily cost chart. Source: TradingView

As visible within the chart above, a sizable area of the ALGO’s upside move required cues from FIFA’s announcement. Late on May 2, the state football governing body says it’d partnered with Algorand to build up its “digital assets strategy,” starting with a wallet solution.

Additionally, it confirmed making Algorand its “regional supporter” in The United States and Europe throughout the next world cup 2010 in Qatar in November along with a FIFA Women’s World Cup New zealand and australia 2023™ Official Sponsor.

The ALGO token is really a native cryptocurrency inside the Algorand blockchain ecosystem, incentivizing network participation and power transactions or condition changes.

ALGO cost does not break key resistance

The most recent bout of purchasing within the Algorand market demonstrated indications of faltering as ALGO arrived at a vital resistance confluence.

ALGO’s cost remedied by nearly 8% after hitting its intraday high near $.74. Interestingly, the height level is near to the token’s 50-day exponential moving average (50-day EMA the red wave within the chart below) along with a support-switched-resistance area.

ALGO/USD daily cost chart featuring resistance confluence. Source: TradingView

Related: Institutional investment flows from ETH and into competing L1 altcoins

Furthermore, the $.74-level also coincided using the upper trendline of the climbing down funnel pattern, raising ALGO’s chance of having a pullback move toward the channel’s lower trendline (near $.50 or lower) in Q2.

ALGO/USD daily cost chart featuring breakout setup. Source: TradingView

On the other hand, a rest over the resistance confluence might have ALGO eye a run-up toward $1, which coincides using the .236 Fib type of the Fibonacci retracement graph, attracted in the $2.38-swing high to $.56-swing low and also the token’s 200-day EMA (nowhere wave within the chart above).

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

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