Algorand pioneers state proofs- Here’s what investors can expect from ALGO

ambcrypto.com:

Algorand [ALGO] is down by more than 30% this week courtesy of a bearish correction after coming into contact with its descending support line. It is now retesting the previous support line where it bounced off earlier this month.

Here are some of the likely scenarios that may take place as ALGO’s price action pushes back to its mid-June support. A likely scenario is a bounce-back from the current level. Note that its current price is still heavily pegged to the rest of the crypto market. This means that another major sell-off will likely lead to more sell pressure for ALGO.

One scenario that may trigger a major sell-off is the SEC’s decision regarding Grayscale’s Bitcoin ETF application. Grayscale just announced that the application was rejected, and Bitcoin dropped below $20,000. This outcome may result in more FUD and another round of sell pressure, hence more potential downside for ALGO.

Source: TradingView

Meanwhile, Algorand just unveiled its plans for the future of cross-chain interoperability at the recently held Consensus 2022 conference. Its team announced a new development dubbed state proofs, as their solution for safer cross-chain interactions. Algorand’s chief technical product manager Noah Grossman noted,

“State proofs are new infrastructure that let entities outside the algorithm blockchain to securely track and verify Algorand state (any information that algorand can use to reach consensus).”

Grossman noted that other blockchains can adopt Algorand’s state proofs. The adoption of Algorand’s state proofs may benefit ALGO’s long-term price action. Its short-term price action remains heavily subdued by the prevailing market conditions.

Source: Santiment

Unfortunately, the bearish market sentiments continue to push