ALGO, the native token for the Algorand blockchain, has marked significant gains over the past few days, despite the bearish crypto market trend. Are these gains merely a consolidation before a further downward push, or could ALGO be ready for a massive bull run?
ALGO Price Action
Over the past week, cryptos have experienced significant bearish momentum. As pressure from the macroeconomic climate continues to increase, the prices of the majority of coins have decreased.
However, ALGO is performing well. The asset experienced a 19.99% increase in the past week, making it the second best crypto to buy among the 100 most valuable assets in the market – behind only CHZ, which is up by 33% in the same period.
ALGO is trading above its major moving average (MA) indicators and showing a positive moving average convergence divergence (MACD). Its relative strength index (RSI) of 58.18 indicates that it is approaching the overbought level – not surprising, considering its price gains.
Surging TVL and FIFA’s Upcoming Partnership
Some intriguing fundamentals about ALGO may help explain its recent price increase.
The total volume locked (TVL) in its decentralized finance (DeFi) ecosystem seems to be rising. Data from DeFi Llama reveals that there is currently $244 million in TVL on the Algorand blockchain. This indicates a 4.09% jump in the past 24 hours, with the AlgoFi crypto banking platform contributing over $100 million of this liquidity.
Another important development is Algorand’s partnership with FIFA – the world’s soccer governing body. As a result of the partnership, the Algorand blockchain will host FIFA+ Collect – a digital collectibles platform that will allow users to purchase different items as non-fungible tokens (NFTs).
FIFA+ Collect is expected to work similarly to NBA Top Shot, allowing holders to purchase images, artwork, highlights, and much more from some of the world’s most prestigious soccer competitions. Since the World Cup will kick off in November, the platform is expected to launch just in time for the showpiece event in Qatar.
Markets Under Pressure from the Fed
While all of these fundamentals could give investors incentives to buy ALGO, the coast isn’t necessarily clear yet. Currently, the crypto market is trading down after the Federal Reserve hiked interest rates by 75 basis points earlier this week.
The interest rate hike means that interest rates in the United States now stand at 3.25% – the highest they’ve been since 2008. With inflation fears still firm in investors’ minds, many would likely be looking to stay away from risky assets like cryptocurrencies.
ALGO has so far defied the market’s downward trend but continued bearish pressure could weigh on its value eventually.
Great Prospects for Tamadoge
The native token for the Tamadoge blockchain gaming ecosystem has proven to be one of the hottest new coins in the market. Its presale ended earlier this week, raising $19 million – outperforming the presale of established coins like Ethereum.
Now, TAMA is expected to list on centralized exchanges. With the expected launch of the Tamadoge platform later this year and Tamadoge set to enter the metaverse soon, TAMA could be the perfect profitability opportunity for investors.
This article was originally published on cryptonews.com