Algorand: Should ALGO investors take profits here or continue with higher level?
Disclaimer: The following analysis is the sole opinion of the writer and should not be considered investment advice.
A large amount of new users for the Algorand chain (ALGO) after its association with FIFA. Remember that the world governing body and blockchain DeFi have agreed to collaborate on the idea of focusing on digital collections.
Now, Algorand has fulfilled his promise. On September 22, Algorand announced that they are launching the "FIFA Plus Connect" NFT collection. According to the ALGO team, the collection will allow fans to enjoy exciting football moments like NFT.
Is Algo real growth?
With growth, ALGO felt it was time to pursue new milestones. According to IntoTheBlock, ALGO's active addresses have improved significantly. However, the remarkable part is that most of the new addresses quadrupled their daily transactions in about three months.
Active address transactions are not the only ones affected by the update. Prices also adopt a positive effect. At press time, ALGO is trading at $0.3855 for the past 24 hours, according to CoinMarketCap. This is the second day in a row that ALGO maintains its green outlook, especially after activating the "Status Check" phase.
Although the milestone has been reached, ALGO hasn't done much in the way of development. On the on-chain platform, Santiment reports that on-chain development activity has been at an all-time low for some time.
On the contrary, the launch of NFT has aroused great interest in ALGO. Santiment data shows social dominance at its highest level since May. Coincidentally, that is around the time that the association represents the latest published high.
There's something about Algo that doesn't correlate with growth?
As ALGO has continued to be the "fun giver" at the end of the year, traders seem to have taken advantage. According to Coinglass, open interest on futures for the coin has increased over the past 24 hours on major crypto exchanges.
Similarly, the perpetual futures market has more than 50% activity on the same exchanges. All is not sweet or sour, though, as the sell-off has devastated a large number of ALGO traders.
According to data from Coinglass, over $2 million has been liquidated in the last 24 hours. As expected, the short-term traders are the ones paying the price. While long settlements amount to $193,620; shorts are liquidated for about $826,560. Compared to previous months, this short-term liquidation is unbelievably higher than normal.
Although the market is bullish, ALGO investors may need to lower their expectations. While anything can happen, there is no clear indication that the green will continue until the end of Tuesday.
Sep 25, 2022