Algorand (ALGO) prices rallied higher on May 3 after becoming FIFA’s official blockchain solution provider. Nonetheless, the ALGO/USD pair continues to face selloff risks.
ALGO’s price jumped 20% to $0.74, its highest level since April 22. Its move upside came as a part of a broader rebound that started April 30, gaining 37.5% in just three days of trading.
As visible in the chart above, a large portion of the ALGO’s upside move took cues from FIFA’s announcement. Late on May 2, the official football governing body revealed that it had teamed up with Algorand to develop its “digital assets strategy,” beginning with a wallet solution.
It also confirmed making Algorand its “regional supporter” in North America and Europe during the next football World Cup in Qatar in November and a FIFA Women’s World Cup Australia and New Zealand 2023™ Official Sponsor.
Just bought some more #algorand to celebrate the fifa news. Transferred to my wallet. Before I could even open the pera app is was already there. Smoothest blockchain I’ve been apart of. Algorand in the future.
— Chris (@chris__aoki) May 3, 2022
The ALGO token is a native cryptocurrency within the Algorand blockchain ecosystem, incentivizing network participation and power transactions or state changes.
3.5 Billion people watched the 2018 #FIFA World Cup, with over 1 Billion tuning in to the final match. The most watched Super Bowl ever drew 114 Million viewers. Algorand is the first new American sponsor since 2011. $Algo #Algorand ⚽️ https://t.co/MKpEhiyEKP
— vanbrooks.algo (@Royal0ui) May 2, 2022
ALGO price fails to break key resistance
The latest bout of buying in the Algorand market showed signs of faltering as ALGO reached a critical resistance confluence.
ALGO’s price corrected by nearly 8% after hitting its intraday high near $0.74. Interestingly, the peak level is close to the token’s 50-day exponential moving average (50-day EMA; the red wave in the chart below) and a support-turned-resistance area.
Related: Institutional investment flows out of ETH and into competing L1 altcoins
Additionally, the $0.74-level also coincided with the upper trendline of a descending channel pattern, raising ALGO’s possibility of undergoing a pullback move toward the channel’s lower trendline (near $0.50 or lower) in Q2.
Conversely, a break above the resistance confluence could have ALGO eye a run-up toward $1, which coincides with the 0.236 Fib line of the Fibonacci retracement graph, drawn from the $2.38-swing high to $0.56-swing low and the token’s 200-day EMA (the blue wave in the chart above).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.