Algorand may instigate a buzz but will ALGO traders buy into the hype?
- Algorand lays the foundation for mass adoption in South America through the Ripio partnership.
- ALGO is ripe for a strong rally but is held back by low demand.
Blockchain networks that are serious about future opportunities often focus on developments during market downturns. Algorand’s latest announcement involving a partnership and plans to explore growth in Latin America underscores such a focus.
Read Algorand’s [ALGO] price prediction 2023-24
Algorand announced a collaboration with Ripio app, the largest digital asset platform in Argentina. The two are reportedly working on tapping into growth opportunities in the crypto market in South America.
According to the announcement, the collaboration aims to create an avenue through which millions of people in the Latin America region will be able to access the crypto market.
We’re proud to partner with @RipioApp, Argentina’s leading digital asset platform, to accelerate the adoption of Algorand in Latin America.
— Algorand Foundation (@AlgoFoundation) August 24, 2023
The official statement on X revealed that the duo will offer a cost-effective way for Latin Americans to gain crypto exposure through USDT. Algorand could onboard millions of users as part of this development. An outcome that may unlock robust growth, especially in the long term.
Is this a new dawn for ALGO?
Now that Algorand’s growth prospects just got better, perhaps it’s best to explore how it can potentially impact ALGO’s price action. Of course, strong user growth could encourage more utility for the cryptocurrency and subsequently influence long-term demand. While that has yet to happen, here are some recent observations to ponder on.
ALGO’s social dominance metric just soared to its second-highest level in the last 24 hours. This was likely due to the market reacting to the Algorand-Ripio partnership. Meanwhile, the weighted sentiment’s latest data revealed that it fell to its lowest level in the last four weeks.
The low-weighted sentiment suggested that investors were still on the fence about doubling down on their ALGO investment. However, there stands a possibility that the aforementioned development may yield a sentiment shift as the weekend approaches.
ALGO’s $0.096 press time price tag is still close to its recent low. This is noteworthy because it crashed to a new historic low a week ago. It was thus, trading at a considerable discount but demand has been slow to recover contrary to expectations.
While there is a possibility of a demand resurgence, ALGO’s price action has been moving in tandem with the rest of the market. Its potential upside may thus be determined by the overall crypt market conditions currently underpinned by low confidence.
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ALGO investors should thus, be on the lookout for potential breakout conditions which could include breaking away from the current correlation with the rest of the market.