BAND Price Doubles on Coinbase Listing Hype; What’s Next?
- BAND, the native token of a decentralized oracle of the same name, surged by up to 100 percent this week.
- The rally appeared in the days leading up to BAND’s listing on Coinbase Pro, a US-based crypto trading platform.
- Nevertheless, the DeFi token now stands overbought according to its technical positioning. It ensures an imminent downside correction.
BAND, a decentralized finance token, doubled its market valuation in just four days of 24/7 trading.
The 68th largest cryptocurrency by market capitalization surged from as low as $3.81 on Monday to as high as $8.08 on Thursday.
The massive move made it one of the best-performing assets in the crypto industry, with its year-to-date profits now sitting more than 3,000 percent above zero, beating Bitcoin as well as its macro contenders like the S&P 500 and Gold.
BAND/USD established an all-time high on Thursday at $8.08. Source: TradingView.com
The token is a part of the Band protocol. It is a decentralized oracle that serves as a layer-2 protocol on public blockchains. It enables decentralized applications (dApps) to borrow existing data on the internet without intermediaries. Meanwhile, its multi-token model ensures that data remains uncorrupted.
Band protocol has started to gain more traction as an oracle that powers the DeFi ecosystem. It launched its mainnet phase 0 and entered new partnerships with some of the leading DeFi projects. One of its recent partners is Elrond.
The blockchain platform announced Tuesday that it is integrating “BAND oracles to bring significant improvements to the current data availability and scalability” to their application ecosystem.
Coinbase Listing
While partnerships played an essential role in boosting BAND adoption among speculators, this week’s 100 percent rally mostly drew its inspiration from the token’s listing on Coinbase Pro.
On July 31, the US-based cryptocurrency trading platform issued a list of DeFi tokens that it would integrate into its services. One of the altcoins that made it to the final-list was BAND.
The news gradually developed into the conscience of traders, especially after Bitcoin’s pump-and-dump action on Sunday sent them looking for safe-haven alternatives. BAND, with its expected Coinbase Pro listing, served as the best bullish hedge.
Today, on August 6, the exchange announced that it had added BAND pairs to its platform. That gave the DeFi token direct access of highly liquid fiat markets, which include the US dollar, Euro, and Pound.
Mon, Aug 10, our BAND-USD, BAND-BTC, BAND-EUR & BAND-GBP order books will enter transfer-only mode, accepting inbound transfers of BAND in supported regions. Orders cannot be placed or filled. Trading will begin on/after 9AM PT the following day, if liquidity conditions are met.
— Coinbase Pro (@CoinbasePro) August 5, 2020
BAND/USD surged more than 5 percent ahead of the New York trading session Thursday, with analysts noting an extended upside run for the pair in the coming days.
Gautam Chhugani, an analyst at Sanford C. Bernstein, said BAND has an “uninterrupted road ahead,” adding that the token would go next for a public listing on a mainstream exchange. Excerpts from his tweet:
“Binance launchpad has delivered some gems. Coinbase has no choice but to go with user demand. But Coinbase has finally left its high ground & delivering what the ecosystem demands. IPO ahead!”
Technical Correction Ahead
The BAND’s bull run also took its price into an overbought area, so showed its momentum strength readings.
At the time of this writing, the BAND/USD’s daily Relative Strength Indicator flashed it 82. A reading above 70 is considered overbought. It means traders would want to neutralize the market with a sell-off at its local top.
While that may not harm the BAND’s overall bullish bias, it certainly risks pushing its price downwards towards its next potential support. As of now, that price floor is sitting near $5.26.
OhNoCrypto
via https://www.ohnocrypto.com
Yashu Gola, Khareem Sudlow