- BAND bulls face key resistance levels up top at the 50-day SMA and 100-day SMA.
- The downside is capped off by the $6.25 support wall.
Band Protocol is in the midst of a bullish rally, having jumped from $5.45 to $6.60 over the last three days. However, that’s not the most eye-raising statistic that one should be focussing on. As per IntoTheBlock “New Addresses” chart, the number of new addresses entering the protocol skyrocketed from 177 to 8,320, going up by 4,600% this Friday.
BAND new addresses
The number of new addresses entering the protocol is a heavily bullish sign. A rising network growth leads to a growth in price while declining network growth leads to decreasing prices. As of now, it is unsure as to what prompted this sudden spike. However, let’s look at how this affects the price.
BAND/USD daily chart
BAND/USD faces two strong resistance levels at the 100-day SMA ($7.40) and the 50-day SMA ($8.60). The MACD shows increasing bullish momentum, prompting the bulls to make an upward charge and break past these levels. As per IntoTheBlock’s IOMAP, the 100-day SMA presents a moderate-to-strong resistance wall.
BAND IOMAP
Previously at this level, 24 addresses had purchased almost 500,000 BAND tokens. If the buyers manage to break beyond this level, the price will rise upto the 50-day SMA ($8.60). If the buyers manage to break past this, it should surge the price all the way up to the all-time high levels at ~$15.
What if the bears take over?
The way the whales have been behaving recently may prompt a pullback by triggering a selling pressure. To visualize this, let’s check out Santiment’s holders distribution chart.
Ethereum holders distribution
As per the chart, the number of addresses holding at least 100,000 BAND dropped by a staggering 47% over the last two weeks. If this does trigger a pullback, it will push the price down to the $6.25 support level. As per the IOMAP, this is a solid support wall wherein 248 addresses had previously purchased a little over 3 million tokens. If the bears somehow manage to break below this level, they will be able to push the price down to the 200-day SMA ($4.20).
Key price levels to watch out for
If the bullish rally continues and the price breaks above the 100-day SMA ($7.40) and the 50-day SMA ($8.60), BAND will get a clear path to potentially reach all-time high levels ($~15). However, if the bears take control, their downside will be capped by the $6.25 support wall.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Why Polygon’s MATIC may have seen a bottom amid underperformance
Polygon MATIC, now known as POL, has been one of the most underperforming cryptocurrencies in the top 100 since the beginning of the year, declining more than 62% year-to-date. However, several key metrics on Wednesday show that its price may have seen a bottom.
SUI rallies as Circle announces the launch of USDC on its network
Layer-1 blockchain Sui has been gaining constant attention following big launches on its network, including the latest launch from USDC issuer Circle. Circle announced its plans to launch its USDC stablecoin on the Sui blockchain on Tuesday. The announcement also included the integration of Circle's CCTP for cross-chain building among developers.
Ethereum could rally 17% amid Bitwise thesis on ETH contrarian bet
Ethereum (ETH) is up 2% on Tuesday as anticipation grows for a 50-basis-point interest rate cut by the US Federal Reserve (Fed). Meanwhile, Bitwise's weekly memo noted that Ethereum still provides several opportunities and looks like a contrarian bet.
Bitcoin rallies with crypto market on steeper Fed rate cut speculation and Q4 positivity
Bitcoin (BTC) and the crypto market saw a brief rally on Tuesday following speculations that the Federal Open Market Committee (FOMC) may opt for a 50-basis-point rate cut during its meeting on Wednesday.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.