Here’s what on-chain data is saying about Band Protocol’s 30% decline 🚨 This article is 4 years old...
Here’s what on-chain data is saying about Band Protocol’s 30% decline
2 min read
Updated: Aug. 12, 2020 at 9:19 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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.
Band Protocol Market Data
At the time of press 9:19 am UTC on Aug. 12, 2020, Band Protocol is ranked #48 by market cap and the price is down 5.62% over the past 24 hours. Band Protocol has a market capitalization of $280.01 million with a 24-hour trading volume of $225.19 million. Learn more about Band Protocol ›
Crypto Market Summary
At the time of press 9:19 am UTC on Aug. 12, 2020, the total crypto market is valued at at $350.17 billion with a 24-hour volume of $112.38 billion. Bitcoin dominance is currently at 60.37%. Learn more about the crypto market ›
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In this article
Band Protocol offers a decentralized data oracle by making data readily available to be queried on-chain, using delegated proof of stake (“dPoS”) to ensure data integrity.
Messari
Messari is a fast growth startup in New York that is building the next generation data layer for the global cryptoasset community.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
HTX
Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
IntoTheBlock
IntoTheBlock is a data science company applying cutting-edge research in AI to deliver actionable intelligence for the crypto market.