CORE Price Could Rally Higher After Its Recent 102% Spike— Here’s Why
NOIDA (CoinChapter.com)— Core DAO’s CORE token bucked the crypto market trend on April 15, rallying over 100% to a daily high near $2.9. However, CORE price pared gains due to profit-booking by bears who were likely following the ‘buy the rumor, sell the news‘ trading pattern.
Certainly, technological updates and partnerships in its ecosystem helped the blockchain platform’s native token rally. Moreover, the Core DAO team expects the recent developments to enhance the functionality and market position of the Core Chain. CORE price recovered strongly from the recent crypto market price crash.
Partnerships And Developments Help Fuel CORE Price Rally
A primary factor contributing to the recent rally was the news of the launch of Colend on April 16. The protocol is a borrowing and lending protocol on the Core Chain ecosystem. Colend leverages the Core Chain’s infrastructure to ensure transaction transparency and security.
The protocol features multiple liquidity pools with dynamic interest rates based on supply and demand. Additionally, Colend introduces a flexible collateral system, which could increase user engagement and investment on the platform.
Moreover, another significant development is the partnership between HTX Ventures and the Core Venture Network.
The partnership with HTC would help provide Core Chain developers with strategic assistance, financial support, and advisory services. As such, it could lead to increased development activity, potentially attracting investors to the project.
The launch of Colend enhances liquidity management and user experience on the Core Chain, while the HTX Ventures partnership provides ongoing growth and support for the ecosystem.
Moreover, the upcoming Bitcoin halving might have contributed to the CORE price rally, given that the project recently launched a non-custodial Bitcoin staking service called coreBTC.
Core Chain Token Paints Bullish Setup
Notably, though profit booking pared some of CORE’s gains, the token has formed a bullish technical pattern called the ‘falling wedge,’ which could attract buyers to the market.
Historically, two converging trend lines create the falling wedge pattern. The pattern occurs when an asset’s price makes lower highs and lower lows steeper than the highs. As such, the pattern usually suggests that an upward reversal is probable.
Traditionally, traders set the price target for this pattern by adding the widest distance between the trend lines at the pattern’s inception to the breakout point.
Notably, when a breakout occurs with significant volume, it indicates a strong market conviction. This enhances the probability that the trend will continue. The high volume breakout is crucial as it confirms the strength and commitment behind the price movement and indicates the breakout is not a fluke.
Above all, according to the rules of technical analysis, if the pattern pans out, CORE price could spike nearly 219% to reach a theoretical price target near $7.4.
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Filed under: Bitcoin - @ April 17, 2024 1:12 am