New Coinbase Tools

Coinbase International, a division of the American crypto exchange of the same name, intended for users outside the United States, announced in early December the listing of perpetual futures on four cryptocurrencies, one of which was Algorand. The new instruments became available for trading on December 12. It should be noted that derivatives turned out to be an important driving force behind Algorand's growth in November.

Growth of Open Interest

Open interest is the number of futures and options in circulation. The maximum size of this indicator for Algorand was observed back in March — $67.5 million. Since June, it has only occasionally exceeded $30 million. But everything changed in November.

On November 2, the open interest of Algorand was $22.57 million, but then it began to rise rapidly. Exactly one month later, on December 2, the figure reached $208.95 million — it grew by 9.26 times in 30 days. It was just a bit short of the historical maximum, which was set on November 14, 2021, at $213.39 million.

DeFi Boom

One of the defining indicators in the DeFi sector is TVL — total value locked, which shows the amount of assets staked in a particular protocol.

On November 4, this indicator for Algorand was $66.29 million. By December 3, it rose to $244.74 million — a 3.7 times increase. By December 16, the TVL of the cryptocurrency dropped to $183.49 million. Nevertheless, these figures still exceed the November figures by 2.77 times.

Partnership with World Chess

In the fall, it became known that Algorand extended its collaboration with the chess company World Chess for another year. The partnership involves further integration of blockchain into the chessarena ecosystem, which should further expand user functionality.

Algorand will remain a sponsor of World Chess. A series of tournaments, the Algorand Tournament Series, will be held on the chessarena.com platform, after which players will be able to receive unique rewards. The partnership will help make Algorand more recognizable among new user groups, while World Chess will continue to improve its gaming platform.

Technical Analysis

November and early December were quite successful for Algorand. Over the month, the price of the cryptocurrency increased by more than 470%. At its peak, on December 3, Algorand was worth $0.60813. However, this is far from a record figure. The historical maximum from November 2021 — $2.82 — is still a long way off.

After a prolonged rise, a correction usually follows. This is precisely what is currently observed in Algorand. From the peak levels on December 3, the cryptocurrency has fallen by 31.19%, and it was even lower.

Judging by the indicators, there are currently no signs of a resumption of growth. The RSI has exited the overbought zone and continues to decline. The ADX, which is also falling, may somewhat encourage investors. However, the decline of this indicator indicates a weakening trend, which has been downward recently.

To say that bulls have returned to the market, Algorand needs to break through the resistance level of $0.4732. If it fails to stay above the support level of $0.35055, the decline may accelerate.

Algorand Price Forecast

Making a highly accurate price prediction is an unrealistic task for a human. Therefore, artificial intelligence, specifically ChatGPT-4o, has taken on this task. The machine believes that Algorand has all chances for growth by the end of the year, despite the current correction.

Thus, according to the neural network's forecast, a realistic option for December 31 will be a price range from $0.7 to $0.85. Considering that Algorand is currently priced around $0.42, this means an increase of 66.7%–102%. In the optimistic forecast, the artificial intelligence goes even further, predicting a price of $1. In other words, if everything goes well for Algorand, it should grow by 138% in two weeks. The success of the neural network's prediction can be evaluated very soon.

Conclusion

The growth of Algorand is related not only to the results of the elections in the USA but also to the rise of several metrics, the extension of cooperation with World Chess, and the placement of new cryptocurrency derivatives on exchanges. In December, the coin started to correct due to investors' desire to lock in profits. Meanwhile, artificial intelligence predicts that Algorand has not exhausted its growth potential.

$ALGO #algorand