- Algorand is laying the groundwork for mass adoption in South America through the Ripio partnership.
- ALGO is ripe for a strong rally but is held back by low demand.
Blockchain networks that take future opportunities seriously often focus on developments during market downturns. Algorand’s latest announcement of a partnership and plans to explore growth in Latin America underscores such a focus.
Read Algorand’s [ALGO] price forecast 2023-24
Algorand announced a partnership with Ripio app, the largest digital asset platform in Argentina. The two are reportedly working on tapping growth opportunities in the crypto market in South America.
According to the announcement, the partnership aims to create a pathway through which millions of people in the Latin America region can access the crypto market.
We are proud to partner with @RipioAppArgentina’s leading digital asset platform, to accelerate Algorand adoption in Latin America.
This integration with @Algorand offers users the fastest and cheapest option for USDC on ramp and transfers through major exchanges. pic.twitter.com/MqPZ2nbblh
— Algorand Foundation (@AlgoFoundation) August 24, 2023
The official statement on X revealed that the duo will provide Latin Americans with a cost-effective way to gain cryptocurrency exposure through USDT. Algorand could onboard millions of users as part of this development. A result that can generate robust growth, especially in the long term.
Is this a new dawn for ALGO?
With Algorand’s growth prospects just improving, it might be best to examine how this could potentially affect ALGO’s price action. Of course, strong user growth could increase the utility of the cryptocurrency and then affect demand in the long run. While that has yet to happen, here are some recent observations to ponder.
ALGO’s social dominance measure just jumped to its second-highest level in the last 24 hours. This was likely due to the market reaction to the Algorand-Ripio partnership. Meanwhile, the latest data on weighted sentiment showed it had fallen to its lowest level in the past four weeks.
Source: Sentiment
The low-weighted sentiment suggested that investors were still hesitant about doubling their ALGO investment. However, there is a possibility that the aforementioned development could trigger a shift in sentiment as the weekend approaches.
ALGO’s press-time price of $0.096 is still close to its recent low. This is remarkable because the price fell to a new all-time low a week ago. So trading was at a significant discount, but demand recovered slowly, contrary to expectations.
Source: TradingView
While there is a possibility of a demand resurgence, ALGO’s price action is moving in parallel with the rest of the market. Thus, its potential upside may be determined by overall crypt market conditions currently supported by low confidence.
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So ALGO investors should be on the lookout for possible breakout conditions, including breaking the current correlation with the rest of the market.