Algorand Price is at a Strong Support! Should you BUY ALGO Today?

The crypto market reached a state where the next evolution would be enhancing speed and scalability. After Bitcoin's eco-friendliness problems and Ethereum's expensive gas fees, many other alternatives started to pop. Those alternatives managed to gain massive popularity back in 2021 and soared in valuation. One of those projects is Algorand crypto project. Not only is it an interesting crypto project, but Algorand price is sitting currently at a strong support level. Should you buy ALGO today?

In this article, we're going to talk about what Algorand crypto is, and technically analyze ALGO token price.

What is Algorand Crypto Project?

Algorand is a blockchain platform that shows close proximity to blockchains like Ethereum, Cardano, and Solana. Algorand's blockchain can now process thousands of transactions per hour. This makes Algorand one of the fastest platforms on the market.

The blockchain uses the modern consensus mechanism Pure Proof of Stake, which ensures high transaction speeds. The blockchain thus developed into one of the fastest on the market. Algorand's native token is the ALGO token.

What problems does Algorand want to solve?

Algorand wants to solve the problems that certain cryptocurrencies bring with them in the long term. A prime example is Ethereum. The Ethereum network is most successful in decentralized applications. However, Ethereum also has its own problems.

Ethereum is characterized by high gas fees and lower transaction speeds. Algorand would like to improve and optimize these restrictions, among other things. Algorand wants to solve the so-called blockchain trilemma. This states that there must always be a compromise on 3 major issues, scalability, security, and decentralization. The network wants to combine all of these 3 properties in its blockchain and is thus in the tradition of Cardano and Solana.

Who is behind Algorand crypto?

As with many modern cryptocurrencies, the blockchain is backed by a non-profit organization. The Algorand Foundation is behind the project and is based in Singapore. Together with Algorand Incorporated, which is responsible for the technical implementation. Both form a management duo in the project.

How does Algorand work?

As a modern smart contract platform, Algorand is very similar to the leading platforms Cardano and Solana . But the blockchain also has functions that the networks mentioned are still waiting for. An important element are the sidechains. With these, developers can operate their own private blockchains.

However, the big difference from other platforms is the modern Pure Proof of Stake (PPOS) consensus mechanism.

What is Pure Proof of Stake consensus mechanism?

The Pure Proof of Stake consensus mechanism goes through two phases in total. In the first phase, the algorithm selects a secret random number. This number represents an ALGO token. The owner of the wallet in which this ALGO token is located is the staker for the next block and can propose it himself (block proposal).

In the second phase, a separate committee (Approval Committee) is formed, which validates the block that was previously selected as valid. Here, too, a random number is used to select who is a participant in the committee. 1,000 random tokens and thus 1,000 random validators belong to the committee. The probability of selection increases with the size of the ALGO fortune.

Algorand Price Prediction - Should you BUY ALGO?

Other than being a promising crypto project, ALGO price is currently at a strong support level. Looking at figure 1, we can clearly see the support of $0.70. The current price is around $0.77, and with the current crypto market adjustment, prices are expected to reach that support price.

Once prices reach that support line, ALGO should retrace back upwards, at least towards a price of $1. This would yield a hefty 42% return. However, it's always a good idea to set an adequate stop-loss area in case things turn south. A sensible stop-loss would be right below the $0.70 price. Keep in mind that if the market is volatile, you might get stopped out before prices continue higher.

Text source: CryptoTicker

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