FIFA World Cup Partner Algorand (ALGO) Finds Morning Support
- It was a bullish morning session, with ALGO finding support in the wake of Thursday’s crypto meltdown.
- On Thursday, Algorand (ALGO) tumbled by 11.3%, as inflation fears and Fed policy bets hit the crypto markets.
- ALGO’s technical indicators are bearish, with ALGO sitting below the 100-day EMA.
On Thursday, market sentiment towards inflation and Fed monetary policy sent the Algorand (ALGO) and the broader crypto market into a tailspin.
Concerns over the need for a more aggressive Fed rate path to curb inflation sank riskier assets. The sell-off came despite Fed Chair Powell’s attempts to calm the global financial markets late on Wednesday.
On Thursday, ALGO slid by 11.32%. Reversing a 6.87% gain from Wednesday, ALGO ended the day at $0.6343.
Earlier in the week, ALGO found support on news of ALGO becoming an official partner of the FIFA World Cup 2022.
Algorand Finds Strong Price Support on FIFA Partnership News
On Monday, FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.
In response, ALGO rallied for three consecutive days to strike a current-week high of $0.7408 before Thursday’s sell-off.
ALGO had fallen to an April 30 and a current year low of $0.5388 before Monday’s news.
ALGO Price Action
At the time of writing, ALGO was up by 0.50% to $0.6375. A bullish start to the day saw ALGO hit a morning high of $0.6877 before falling to a morning low of $0.6286.
ALGO will need to move back through the day’s $0.6598 pivot to target the First Major Resistance Level at $0.7047. ALGO would need broader market support to return to $0.70.
In the event of an extended rally, ALGO could test the Second Major Resistance Level at $0.7750 and resistance at $0.80. The Third Major Resistance Level sits at $0.8907.
Failure to move through the pivot would bring the First Major Support Level at $0.5893 into play. Barring another extended sell-off, ALGO should avoid sub-$0.58. The Second Major Support Level sits at $0.5442.
Looking at the EMAs and the 4-hourly candlestick chart (below), the signal is bearish. ALGO sits below the 50-day EMA, currently at $0.6604. This morning, we saw the 50-day EMA pull back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; ALGO price negative.
A move through the 50-day EMA would shift sentiment and support a run at $0.70.