Reasons why Algorand [ALGO] traders shouldn’t be disappointed in short-term
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.
BREAKING: @FIFAcom has announced #Algorand will become the official blockchain of FIFA, empowering the global football community with cutting-edge, sustainable technology. Read more ???? @FIFAWorldCup #FIFAWorldCup pic.twitter.com/LuEFTY3WK6
— Algorand (@Algorand) May 2, 2022
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.
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%.
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.
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.