ALGO appears ready to go up to $ 3
Before the last trading sessions, the cryptocurrency market was booming. The total capitalization thus exceeded the $ 3 trillion mark for the first time.
ALGO 4 Hour Price Chart | Source: Tradingview
However, at the time of writing, sentiment has slackened. In fact, of the top 100 coins, only 9 have risen in the last 24 hours. Strangely enough, ALGO is one of those “elite” coins.
Now, most mid-cap altcoins typically follow in the footsteps of large-cap coins. In other words, BTC and ETH can be seen as the locomotives of the crypto space, driving other coins to follow the available path. This structure is basically explained as a pulling effect.
It is clear, however, that ALGO has managed to break away from the broader trend and isolate itself from the aforementioned pulling effect.
This is not surprising for two main reasons. First, ALGO has shown similar trends many times. Second, this coin has a rather low correlation with large cap coins.
Good or bad?
Overall, ALGO’s previous trends are quite interesting. Between April and May, when most of the coins on the daily chart reached new highs, ALGO barely reached the local February high massively.
Given the overall bearish sentiment at the moment, ALGO’s “indifferent” nature seems like a blessing for now, but is set to become a threat in the coming days as other coins rebound.
ALGO / USDT | Source: TradingView
November was a pretty busy month for the Algorand network. There is a lot of positive news from relationships these days partner new, launch announcement NFT market and information on the start of the Algomint Mainnet (Mainnet). All of the above factors combined have sparked optimism and created a favorable environment for ALGO to raise prices.
It should be noted, however, that such hype rarely lasts long and the previous price gains can only be temporary.
Support basic factors
Against all odds, the ALGO fundamentals appear to be pretty strong at the time of writing.
In view of the state of development, the Algorand network maintains a constant macroeconomic upward trend.
Competition in the broader crypto market is slowly getting tougher, and to stay relevant, projects need to constantly update and refine the network. Hence, the strong growth front of the network has the potential to help ALGO maintain its high rating over the long term.
Development activities | The source: mood
The state of the Sharpe Ratio has also been quite impressive so far, suggesting that investors have made high returns relative to the risk they have taken.
It should be noted, however, that the risk / reward ratio at the time of going to press was around a monthly high of 3.27.
Sharpe Ratio | The source: Messari
While there are questions about whether ALGO will rise in the short term, it is safe to say that the coin has a reasonably good medium-term outlook at this point. So it’s only a matter of time before ALGO crosses the $ 3 mark.
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According to AMBCrypto