Algorand (ALGO) is one of the few leading cryptocurrencies to trade in the green early on Tuesday even as most of the market remains under the control of bears as Bitcoin slides below $47,000. At the time of writing, ALGO/USD is trading at around $1.57.
Algorand Foundation and Algofi Announce Liquidity Mining Program
The potential Ethereum killer is enjoying support from a recent announcement about the Algorand Foundation partnering with DeFi app Algofi to launch a liquidity mining initiative worth $3 million. Scheduled to start in January 2022, he program will see Algofi distribute ALGO tokens to users when they borrow and lend ALGO, STBL, USDC, goBTC and goETH on its platform.
Algofi is the blockchain’s first algorithmic money market and stablecoin, and has announced the partnership with the Algorand Foundation to allocate 2 million ALGO tokens through Q1 2022 via the Aeneas Liquidity Program. The move is aimed at increasing Algorand’s DeFi footprint and developing the ecosystem further.
Other Fundamentals Supporting ALGO
Another exciting development driving buyers to ALGO is Metapunks – one of Algorand’s largest and first NFT collections, announcing a public. Metapunks is the first collection of 3D-generated NFT metaverse avatars minted on this blockchain. Each of their NFTs can be viewed using a 3D viewer on the website or using AR to integrate them in real world. The public sale comes shortly after a private sale in which 2,000 pieces of the collection were sold.
Earlier this week, the Algorand Foundation also announced a grant to Glitter Finance for the creation and development of a cross-chain bridge that will connect Algorand with four other leading blockchain networks – Solana, Terra, Polygon and Cudos. Glitter Finance will soon launch its token sale on the P2PB2B exchange to help create the first bidirectional bridge between Algorand and Solana.
ALGO/USD Technical Analysis
Taking a look at the H4 price chart of ALGO/USD, most of the moving averages are indicating a bullish bias, along with the momentum indicator. However, the 200 SMA and the MACD suggest some selling interest as well.
Algorand’s price is sitting above the pivot point at $1.50 and buyers can comfortably take it higher in the near term. The next obstacle they could encounter as long as the sentiment and buying interest sustains is at the immediate resistance at $1.75.