Algo Traders: Beware of Potential Challenges Ahead!

Algo Traders: Beware of Potential Challenges Ahead!

• The Algorand Foundation announced a new partnership with DWF labs, a global multi-stage Web3 investment firm.
• Despite the news of the partnership, ALGO failed to respond to the announcement and carved out its own path.
• Although ALGO traded 4.76% lower than its opening price for the day, its Awesome Oscillator was seen flashing green bars at the time of writing.

Algorand’s New Partnership Announcement

The Algorand Foundation announced a new partnership with a Web3 investment firm. The aim of this partnership is to support the health and growth of the ecosystem built on Algorand’s blockchain by investing $50 million ALGO tokens.

ALGO’s Price Response

Despite this news, ALGO failed to respond positively and carved out its own path. At press time, ALGO was trading 6.64% lower in 24 hours and 12.19% higher in 7 days as per data from CoinMarketCap. Additionally, ALGO’s daily price chart showed signs of bullishness as per Awesome Oscillator which flashed green bars at press time and MACD line which moved above signal line indicating bullishness.

RSI Indicator

However, all was not well with ALGO’s Relative Strength Index (RSI). The RSI stood at 49.85 at press time but it was moving in a descending position indicating that selling pressure could increase due to lack of upward movement in price action after the announcement of new partnership.

Positive Impact?

It remains unclear if the news of Algorand’s new partnership will have any positive impact on its native token – ALGO – or if it will continue carving out its own path despite these announcements.

Conclusion

Overall, while there are some signs pointing towards bull market sentiment for ALGO traders such as green bars from Awesome Oscillator and an uptrend from MACD indicator; there also exists certain bearish indicators such as downward trend from RSI which indicate that more caution should be exercised around investing in ALGO tokens at this moment considering lack of clear direction for price action post-announcement news release from Algorand Foundation about their new partnership with DWF labs