The Algorand price has been under intense pressure this year as worries about its demand and ecosystem rose. ALGO, its native token, is trading at $1.4565, which is about 20% below the highest level this year. Its total market capitalization has declined to about $9 billion, making it the 23rd biggest cryptocurrency in the world. At its peak, it was among the top 15 biggest coins.
Algorand is a blockchain project that has created a platform where developers build quality decentralized applications. Today, the network is used to develop all types of applications, including those that track air quality. Developers love the network because of its fast transaction speeds and lower costs compared to other popular networks.
Earlier this week, Algorand announced that it will partner with Alchemy Finance in a bid to drive fiat payments. The partnership will see the networks offer these services in about 65 countries.
However, like all layer-1 networks, Algorand faces a number of key challenges. For example, the industry is seeing significant competition, with projects that have different models. For example, NEAR protocol is using the sharding method to boost its network speed while Ethereum is transitioning to a proof-of-stake network.
Therefore, this means that its growth prospects could be limited in the coming months. Also, a closer look at the network statistics shows that the number of transactions in its ecosystem is in a downward trend.
Algorand price prediction
The four-hour chart shows that the ALGO price has been in a bearish trend in the past few weeks. Along the way, the coin has moved below the 25-day and 50-day moving averages. It is also slightly above the key support level at $1.2610, which was the lowest level on December 20th. A closer look shows that the coin has formed a rising wedge pattern.
Therefore, the path of the least resistance for the Algorand price is lower. If this happens, the next key support level to watch will be at $1.2610, which is about 13% below the current price.