Here is why Algorand is rallying despite a bearish market
The broader cryptocurrency market has been underperforming for the past few weeks. However, Algorand is rallying despite the bearish market.
The cryptocurrency market has been in a bearish trend for the past few weeks. The prices of most cryptocurrencies are down by more than 5% over the past 24 hours. The latest bearish trend saw Bitcoin drop below the $50k level for the first time since August.
However, Algorand has been performing excellently despite the bear market. At press time, ALGO is up by nearly 4% over the past 24 hours and is currently one of the top 20 cryptocurrencies by market cap.
The rally can be attributed to two huge news related to Algorand in the past few days. Former Citi exec Matt Zhang launched Hivemind Capital Partners last week, and the cryptocurrency fund partnered with Algorand. Algorand will provide the technology and network ecosystem infrastructure.
Miami-based Algorand-focused venture capital firm Borderless Capital also launched its $500 million “Borderless ALGO Fund II” a week ago. The launch of the two Algorand-related funds in the past week led the ALGO coin to perform excellently despite the poor performance of the broader market.
Key levels to watch
The ALGO/USD 4-hour chart is one of the most bullish in the cryptocurrency market at the moment. ALGO is trading at $1.7 per coin, up by more than 3% over the past 24 hours. The RSI is above 50, indicating that the coin is heading into the oversold territory.
Furthermore, the MACD line is just above the neutral zone, indicating a bullish performance from the cryptocurrency. If ALG continues with its current momentum, then it could rally past the $1.9 resistance level over the next few hours.
In the event of an extended rally, ALGO could surpass the second major resistance level at $2.2 in the coming hours. However, the $2.5 psychological level should limit further upward movement in the short term.