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Reasons why Algorand [ALGO] traders shouldn’t be disappointed in short-term

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FIFA announced Algorand as its new official sponsor. The token had been struggling to get rid of bears, however, now it’s being anticipated that the announcement might help ALGO in ways more than one.

History in the making?

Mainstream adoption is possible only through partnerships with popular mainstream companies or brands. But crypto found its way through sports partnerships and made it big in a very short frame of time. 

The latest recipient of the same is Algorand which has teamed up with FIFA to agree on a sponsorship and technical partnership deal. With this deal, Algorand will become the official blockchain platform of FIFA and provide the official blockchain-supported wallet solution.

In addition to this, the blockchain will also be a regional supporter in North America and Europe and a FIFA Women’s World Cup Australia and New Zealand 2023 official sponsor.

The announcement of this deal came just at the right time as less than 72 hours ago from 3 May, ALGO was trading at a 15-month low of $0.56. Since then, ALGO rose by 7% in two days. Fuelled by the deal, on 3 May, ALGO shot up by 14%, even touching 23% at one point.

Algorand price action | Source: TradingView – AMBCrypto

This news will help the ALGO holders significantly to get out of the losses they have facing for quite some time. Of the 11.7 million addresses which hold ALGO in their wallet, about 96.6% of them (11.36 million) are suffering losses.

Barely 3% of them are doing good, but these 353k investors are not enough to imbue unconditional, never-ending optimism in the other 96%.

Algorand investors in loss | Source: Intotheblock – AMBCrypto

This is why more investors are looking to sell their ALGO holdings. Investors don’t look interested in buying ALGO right now. In fact, sell orders in the market exceeded the buy orders by almost one million ALGO.

Algorand buy and sell orders | Source: Intotheblock – AMBCrypto

However, eventually, Algorand can observe rising investors’ interest in the coming days because of its growing popularity. Owing to the FIFA deal, the network is dominating the social channels, commanding 2.6% of the crypto traffic.

Algorand sentiment | Source: Santiment – AMBCrypto

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Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.