Will Algorand’s decentralization stimulant drive ALGO to achieve new highs

Algorand [ALGO]starting from 22 September, was able to outperform most cryptocurrencies thanks to the recent activation of “State Proofs”. At press time, ALGO was up 12.74% with a rally to $ 0.3578 per CoinMarketCap data.

Interestingly, price wasn’t the only area affected. The price monitoring platform showed that ALGO also saw an increase in volume, recording a 45.26% increase in the past 24 hours. Beyond the price, how exactly has this development affected the ALGO ecosystem?

No interference, just decentralization

During the announcement, the founder of ALGO noted that state trials would allow the connection of ALGO with bridges without any intermediary.

The founder also said the state tests were extremely useful. He added that the new integration would help prevent Algorand from quantum attacks in the medium post attached.

These attacks are attacks aimed at disrupting public key cryptosystems. Overall, the evidence would allow the ALGO community to possess publicly verifiable digital signatures.

In light of the news, some on-chain metrics of the ALGO chain have started to react. While development activity declined further, the NFT metrics preferred the other path. According to SanctityALGO’s NFT trading volume increased from $ 186,000 on September 21 to $ 606,000 at press time.

Source: Santimento

Also, as far as the whale supply rate is concerned, there were no positives to be grasped. However, further indications have shown that the ALGO community may have taken its NFT parts seriously.

NFTs that were worth more than $ 100,000 had no business between September 19-20. But starting from the period of the addition of the State Trials, the transactions increased to $ 346,000.

Source: Santimento

Will the fire continue to burn?

Now that the creator’s economy token is left intact, will it stay that way in the next few days? Well, the Relative Strength Index (RSI) showed that ALGO’s momentum was still increasing.

At the time of writing, it was heading towards the overbought level at 69.48. If it rises further, there could be a reversal, which in turn could affect the price.

While evaluating the exponential moving average (EMA), it was observed that the price increase may last longer. Based on the 4-hour chart, the 20 EMA (blue) has held a solid position versus the 50 EMA (yellow). With the position, it is possible that investors have a chance to make more profits.

Source: TradingView

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