The Algorand and Elrond prices have been in consolidation mode lately. The ALGO price is trading at $1.2897, where it has been in the past few days. It is about 54% above its lowest level in February. EGLD price, on the other hand, is at $133, which is also about 50% from the lowest level in February.
What happened: The cryptocurrencies industry has had some significant actions in the past few days as investors focus on the rising bond yields and the likelihood of high-interest rates. In its meeting this week, the Fed ruled out any rate hikes and QE tapering in the near term.
Still, judging by the performance of the bond market, investors believe that the bank will hike rates earlier than expected as inflation rises. Cryptocurrencies tend to underperform in a period of higher rates.
Meanwhile, other fast-growing digital currencies have come up. For example, Binance Coin is now the third most valuable digital currency in the world while others like Terra, Theta, and VeChain have become highly valued.
Algorand price prediction
The daily chart below shows that the ALGO price reached an all-time high of $1.1846 in February. It then dropped by 55% to a low of $0.8385. Since then, the price has formed a small ascending channel pattern and moved slightly above the 25-day moving average. This channel seems like a version of a bearish flag pattern.
Therefore, in my view, we should not rule out another major pullback in the near term. If it happens, the price could drop to $0.900. However, a break above the upper resistance at $1.400 will invalidate the downward thesis.
ALGO price chart
Elrond Price Forecast
The daily EGLD price chart shows that it is similar to that of Algorand. After reaching an all-time high of $216.8 in February, the price pulled-back by 58% and settled at $90.4470. Since then, it has been in consolidation as traders ponder the next moves.
The difference is that the Elrond price appears to be forming a small head and shoulders pattern. Therefore, in my view, the overall short-term outlook is bearish. I suspect that the price will retest the February 23 low of $89.
EGLD price chart