Algorand fails to break consolidation: Should you sell ALGO?

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Algorand is a decentralized blockchain technology that offers more speed and security than other blockchain technologies in the industry. It combines all the well-established features of different cryptocurrencies, such as decentralization, easy-to-divide tokens, added speed, less computing power, and many others.

It was launched in 2019, and after that, the Pure-Proof-of-Stake consensus made Algorand distinctive from other crypto networks. Generally, Proof of Work is more energy-consuming and needs complex math problem-solving to generate new blocks and confirm transactions, but it is more secure than PoS consensus.

However, in Algorand, transactions and new block generation are faster and more efficient. In this pure PoS consensus, a user with maximum ALGO holding will get a chance to verify and validate more transactions.

Another important factor is the scarcity of this coin. It is interesting to note that over 7 billion ALGO coins are circulating, with a maximum supply of 10 billion. Besides its value as an asset, ALGO has different uses:-

• It can build an ecosystem of decentralized applications where ALGO coins can be used.
• It can host smart contracts that govern digital property.
• Developers can use this blockchain for a wide range of digital and real-world assets.
• The network can be used in decentralized finance applications.

On the daily chart, ALGO has been consolidating between $0.4 and $0.27. Currently, it is trading around $0.357, which is around the resistance level. Candlesticks are forming in the upper Bollinger Bands that suggest positive momentum, but it may shift the momentum and retrace back to the level of $0.27.

Most other technical indicators are neutral, so we think it is not an ideal time to invest for the short term. However, Algorand is a leading cryptocurrency and if you believe in its fundaments, read our ALGO price prediction and make your investment decision accordingly!

After forming a bullish engulfing candle last week, Algorand is forming a bearish inverted hammer on the weekly chart. The last few candlesticks are forming within a range that suggests a sideways movement even on the weekly chart.

We think it is not an ideal time to invest for the long term; you should accumulate the coin around the support. Otherwise, you can trade for the short term with a target and stop loss.