Why is Algorand up by 5% over the past 24 hours?
The cryptocurrency market is slowly recovering from its recent slump as we head into 2022, with some coins performing well.
Bitcoin and other major cryptocurrencies have been underperforming since hitting new all-time highs in November. BTC is down by more than 30% from its all-time high of $69,044 achieved six weeks ago.
However, the market is slowly recovering heading into the new year. Bitcoin is trading above the $47k level while Ether could look to break past the $3,800 resistance level over the coming hours.
One of the best performers at the moment is ALGO, the native coin of the Algorand blockchain. ALGO’s value is up by more than 5% over the past 24 hours, outperforming numerous coins in the top 20 list.
At press time, ALGO is trading at $1.70, up by more than 5% today and 16% in the past week. The major catalyst behind the recent rally is the launch of decentralised finance (DeFi) incentive. The Algorand Foundation recently partnered with Algofi to launch a $3 million incentive program.
The initiative is designed to boost the DeFi usage on the blockchain. Users who supply, borrow, and stake on the Algofi platform will get to benefit from the initiative in the first quarter of 2022. Algofi users will soon start staking ALGO and stablecoins AlgoStable (STBL) and USD Coin (USDC). The stakers will be rewarded with ALGO tokens.
Key levels to watch
The ALGO/USD 4-hour chart is one of the most bullish in the market at the moment, with the coin now up by more than 5% over the past 24 hours. The MACD line is way above the neutral zone, revealing that ALGO is currently experiencing a bullish trend.
The RSI of 51 shows that ALGO could soon enter the overbought region as the buying pressure accumulates. If the rally continues, ALGO could break the $2.0 psychological level over the coming hours. An extended rally could see ALGO reach its November high of $2.2 in the next few trading sessions.