Band Protocol (BAND) has been garnering significant attention over the past few weeks due to its intense rally that sent it from the lower-$4.00 region in early-August to highs of nearly $18.00 that were set earlier this week.
The cryptocurrency is now facing an influx of selling pressure as its highly profitable investors begin taking profits.
A dive into BAND’s on-chain data, however, suggests that the cryptocurrency is now trading just above a major support level that may bolster its near-term outlook.
That being said, it still faces some heavy resistance around $14.00 that may be difficult for buyers to surmount.
Band Protocol sees parabolic growth amidst a slew of announcements
Band Protocol’s token has been one of the best performing within the entire crypto market so far this month.
After stabilizing around $4.00 in early-August, the token’s price began seeing a parabolic ascent that ultimately led it to highs of $18.00 just a couple of days ago.
A few key factors backed this strong price movement, including notable integration announcements as well as a coveted Coinbase Pro listing.
Adding fuel to the fire was Huobi’s decision also to list the token, which is what propelled it to its $18.00 highs.
While mapping out the events that helped drive this uptrend, analytics platform Messari noted that Band Protocol took a “page straight out of the LINK handbook.”
All these factors, however, were not enough to provide it with sustainable momentum, as it subsequently erased 30% of these gains.
“BAND has recently taken a page straight out of the LINK handbook with a slew of partnership and integration announcements, including a Coinbase Pro listing.”
Unless the Band Protocol’s oracle network sees further integrations in the near-term, there’s a high likelihood that the cryptocurrency’s uptrend will stagnate.
On-chain data shows BAND has strong support around $12.50
Data from blockchain data firm IntoTheBlock shows that the Band Protocol token may not decline for too much longer before finding some strong support.
The firm’s “In/Out of the Money Around Price” indicator shows that the price region between $12.56 and $12.95 is strong support.
As seen in the above image, BAND doesn’t face too much resistance until it reaches the price region between $14.16 and $14.48.
One factor that may also boost its price action is the mounting hype surrounding oracles. This has led some investors to use Chainlink’s multi-billion-dollar market cap as an anchor for BAND’s growth potential.
Mentioned in this article
Editorial credits
