Algorand Price Forecast: ALGO triggers technical breakout as network goes multi-chain
- Algorand rebounds after forming a double-bottom pattern, targeting a massive breakout to $0.2598 and $0.3665.
- Algorand announces the launch of Wormhole Native Token transfers, supporting multi-chain interoperability.
- Multi-chain interoperability has the potential to revolutionize Algorand's DeFi ecosystem.
Algorand's (ALGO) extends rebound on Thursday, reflecting positive market sentiment in the broader cryptocurrency market. The launch of the Wormhole Native Token Transfers (NTT) on Tuesday sparked a surge in ALGO interest, paving the way for a recovery from lows around $0.1521.
Algorand hovers at approximately $0.1852, up over 2% on Thursday, backed by key technical indicators, including the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).
Algorand integrates Wormhole's NTT for multi-chain transfers
Algorand announced the debut of Wormhole's NTT standard on the blockchain, built in collaboration with Folks Finance, a renowned lending and liquid staking protocol in the ecosystem.
Wormhole supports more than 50 blockchains, boosting Algorand's competitive interoperable network. The upgrade targets developers who want to issue and transfer tokens between chains without needing to involve wrapped assets.
"This milestone future-proofs Algorand's DeFi ecosystem. Builders now have a trusted way to launch multi-chain tokens that preserve the native user experience and performance of Algorand," co-founder of Wormhole Foundation, Robinson Burkey, said.
For retail users in the ecosystem, the upgrade enables them to transfer assets directly between the Algorand network and other NTT-enabled protocols using established interfaces.
The Algorand Foundation CEO, Staci Warden, emphasized that interoperability is a core pillar of Algorand's long-term vision, especially when it comes to supporting Decentralized Finance (DeFi) protocols.
Technical outlook: Algorand eyes double-bottom pattern breakout
Algorand (ALGO) is trading at $0.1853, following a nearly 20% recovery from its recent lows of $0.1521 reached on June 22. A buy signal from the Moving Average Convergence Divergence (MACD) indicator indicates that ALGO could breach the immediate resistance at $0.1897. This hurdle falls near the 50-day Exponential Moving Average (EMA).
Often, traders increase exposure when the blue MACD line crosses above the red signal line. Green histogram bars above the mean line could catalyze bullish momentum, predisposing Algorand to gains.
ALGO/USDT daily chart
The Relative Strength Index (RSI) position, slightly above the midline, indicates a steady uptrend, particularly after falling to oversold territory in June.
If ALGO extends recovery above the 50-day EMA at $0.1897, traders will likely expand their bullish scope to the 100-day EMA at $0.2042 and the 200-day EMA at $0.2192.
A larger 41% technical breakout cannot be ruled out, particularly due to the double-bottom pattern formation, as shown on the daily chart. The neckline resistance at $0.2598 could either delay the upswing or pave the way for an extended breakout to $0.3665.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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