The Impressive Gains of Nervos Network’s Native Token
The native token of the Nervos Network, CKB, has seen a significant increase in value recently, while traders are betting against its price surge. In the past 24 hours alone, CKB has risen by 64% and is currently trading at $0.014. Its market cap has also surged to $612 million, making it the 108th-largest cryptocurrency. Additionally, CKB’s daily trading volume has experienced a 50% rally, surpassing $500 million.
A Price Surge and Recent Developments
Over the past 30 days, CKB has witnessed a remarkable 320% increase in price. However, it is still down by 69% from its all-time high of $0.044 in March 2021. On February 13, Nervos Network announced the release of RGB++, an extension protocol for the Bitcoin (BTC) blockchain. Shortly after this announcement, CKB experienced a surge of 54%.
Increased Open Interest and Negative Funding Rate
Since the launch of the RGB++ client, CKB’s total open interest (OI) has risen by 430%, reaching approximately $50 million. Despite this positive development, the total funding rate for CKB across all exchanges has dropped below zero. Currently hovering around negative 0.18%, this indicates that short-position holders are dominating long traders and expecting a price drop.
High Price Volatility and Selling Pressure
Market intelligence data reveals that CKB’s Relative Strength Index (RSI) is currently at 82.5, suggesting high price volatility and selling pressure. This leaves room for potential manipulation by whales in the market. To maintain a positive trend, CKB’s RSI would need to cool down to below 60. Furthermore, an RSI of below 50 could bring further bullish momentum to the asset.
Conclusion
The native token of the Nervos Network, CKB, has experienced impressive gains recently. With a significant increase in value and trading volume, CKB has become one of the top cryptocurrencies in terms of market cap. However, traders are currently betting against its price surge, as indicated by the negative funding rate. The high price volatility and selling pressure suggest potential manipulation by whales. To sustain its positive momentum, CKB’s RSI would need to cool down. Overall, these developments highlight both the potential and challenges faced by CKB in the crypto market.
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