Algorand Price Collapses as World Cup Demand Fizzles

Algorand price has been in a strong bearish trend in the past few months. The ALGO crypto price plunged to a low of $0.1630, which was the lowest level on record. It has plunged by more than 94% from its all-time high. 

World Cup bet backfires

Algorand is a well-known blockchain project that seeks to become a leading player in the smart contract industry. Its benefits over Ethereum is that it is significantly faster, cheaper, cleaner, and more scalable.

Algorand has not had a lot of success in the industry. For one, its total DeFi ecosystem has a total value locked (TVL) of more than $148 million, which is significantly lower than that of other chains like Ethereum and Binance Smart Chain. 

Algorand was recently in the spotlight when it became one of the top sponsors of the recent World Cup tournament in Qatar. As part of the partnership, FIFA embraced Algorand as its top blockchain partner. 

The relationship saw FIFA used Algorand’s blockchain to power FIFA+, its NFT platform. FIFA+ sells some of the best-known NFTs in the soccer world. The partnership was important because of the overall popularity of soccer around the world.

However, recent data shows that the bet on FIFA may have backfired as Algorand price has continued crashing. Similarly, NFT and DeFi activity on Algorand has waned substantially in the past few weeks. 

This decline is likely because investors are selling the fact. Historically, financial assets tend to rise before a major event happens and then rebound after it happens.

Algorand price forecast

The daily chart shows that the ALGO price has been in a strong bearish trend in the past few months. It has collapsed below all moving averages while the Relative Strength Index (RSI) has plunged below the oversold level. The coin also plunged below the important support level at $0.2745, the lowest level since June 18.

Therefore, the outlook for Algorand price is still bearish as sellers target the next key support level at $0.10. A move above the resistance level at $0.21 will invalidate the bearish view.