- Algorand signed a technical collaboration with FIFA early this year.
- With the near-term outlook remaining substantially bullish, can the FIFA World Cup offer respite?
The FIFA 2022 World Cup will commence on November 20. Meanwhile, Algorand holders remain attentive to witness whether crypto will flourish following its technical collaboration with FIFA. FIFA confirmed inking a partnership deal with the blockchain in May, making it the official cryptocurrency network for FIFA.
Algorand will use the opportunity to offer blockchain-backed wallet solutions. The football governing body’s announcement during the news release explained that the agreement would see Algorand assisting FIFA in establishing its crypto strategy.
At the same time, FIFA offers sponsorship assets such as media exposure, promotional opportunities, and advertising.
Bears in Action
Algorand’s new bearish cycle as the countdown to World Cup nears an end presented worrying signals. The daily chart shows the token’s MACD intersected with the trend line in a declining bias on November 8. That confirmed an emergence of a new bearish cycle for ALGO.
Coinmarketcap data shows the alternative token’s price has dropped by 34% since November 8. Meanwhile, ALGO’s bear cycle met the sudden fall of exchange FTX, which saw the broad market tumbling to lows witnessed more than a year ago.
ALGO’s selling momentum magnified as bears dominated the market. Algorand distributors controlled the marketplace during this publication. The Directional Movement Index confirmed that with its position. Meanwhile, the sellers’ strength at 24.37 was massively beyond buyers’ at 15.01.
Furthermore, the ADX (Average Directional Index) indicated that sellers established a rock-hard regime that buyers may fail to conquer in the short term. The EMA also supported the case. While publishing this blog, the 20 Exponential Moving Average swayed beneath the 50 Exponential Moving Average, indicating the intensity of the current token distribution.
Moreover, primary indicators like the RSI (Relative Strength Index) and the MFI (Money Flow Index) have maintained downtrends since November 7. That confirms that last week witnessed a consistent buying pressure slump as sellers withered the marketplace.
While writing these lines, the Relative Strength Index stood at 40.45, whereas the MFI read 41.80. the indicators remained beneath their neutral levels. Meanwhile, November 15 sessions saw investor bias switching to positive from negative. That suggested faith in price rallies regardless of ALGO’s sustained price decline. Especially with the World Cup around the corner.