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Algorand’s new announcement raises hopes of move to DeFi… Details inside

Published

2 years ago

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Source: StockAI

  • Algorand embraced a new self-custody exchange as part of a deeper focus on DeFi.
  • ALGO bulls regained control, but the stakes remained high as directional uncertainty crept in.

Algorand [ALGO] revealed a new development on 19 January, which could underscore a potential strategy to tap into growth through DeFi. The blockchain network revealed that the C3 Protocol has rolled out a new self-custody exchange called “C3.”

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The topic of self-custody, which became increasingly popular in 2023, was paramount to understanding this partnership. 2022 was rampant with the fall of crypto exchanges. Moreover, the community witnessed the cracks and risks in custodial and centralized exchanges.

C3’s launch could likely encourage self-custody and allow Algorand to tap into the DeFi segment. The latter may be one of the fastest growing segments, and this move by Algorand might put it in a position to leverage that growth.

ALGO bounces back at this key level

It has been an interesting week for ALGO’s performance, as well as the overall crypto market. However, there was some downside in the last few days, which resulted in a 12% correction from the recent monthly top. Fortunately, this retracement was short-lived as prices bounced back at the 50-day moving average, which undoubtedly acted as a psychological buy zone.

Source: TradingView

It was worth noting that the price also bounced back after encountering the 50% RSI level. In addition, there was a surge in social dominance. Perhaps this was an indication of increased attention to ALGO, curbing the downside and eventually manifesting as bullish volume.

Source: Santiment

How much are 1,10,100 ALGOs worth today?

The above observation was consistent with a bullish pivot observed in ALGO’s weighted sentiment on 17 January. This confirmed that investor

outlook favored the bulls, thus the short-lived downside. This bullish-centric sentiment may have been supported further by the uptick in Algorand’s development activity since the start of January.

Source: Santiment

ALGO’s current price action reflected the overall crypto market’s performance. This made it difficult to predict the next move with 100% accuracy. However, investors should at least be pleased with Algorand’s increased focus on DeFi.

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