Gorilla Token’s 261% Bull Run Attracts Buyers, But Price Correction Risks Loom
NOIDA (CoinChapter.com) — Memecoin project Gorilla has attracted some hype after its token price rallied 261% since Jan. 29 to form a daily high near $0.007404 on Feb. 11.
The surge in Gorilla Token’s market price is likely due to the project introducing features like the IDO Launchpad and cross-chain trading enhancements. The launchpad’s no upfront fee policy, and the addition of stop/loss functions provide a more appealing trading environment.
Moreover, the project’s dedication to environmental conservation also aligns with a section of traders with a growing investor interest in sustainable and ethical investments.
On the 4-hour (4H) chart, the Gorilla token price rally faces resistance near $0.00824, which has capped the token’s uptrends since late December last year. However, breaking above the resistance could help GORILLA price rise to the resistance near $0.0098 before retreating.
Conversely, if the rally fails, GORILLA price could drop to the 50-4H EMA (purple wave) support near $0.00605. If Memecoin’s price breaches the immediate support, the Gorilla token price could drop to the 200-4H EMA (green wave) support near $0.0049.
The RSI for GORILLA remained neutral, with a score of 58.87 on the 4H chart.
Gorilla Price Moving Inside Bearish Pattern
Meanwhile, GORILLA price has formed a bearish technical pattern called the ‘Rising Wedge.’
The pattern forms when an asset’s price consolidates between upward-sloping support and converging resistance lines resembling a wedge. Declining trading volumes often accompany a breakdown below the pattern.
The price target of the pattern is equal to the height of the back of the wedge. If the Gorilla token price breaks below the bearish pattern, the token might fall to the theoretical price target of $0.00304, a drop of over 58% from current levels.
What is the Gorilla Project and its Tokenomics?
The Gorilla Project marks its territory in the crypto ecosystem with a focus on combining blockchain functionality with community-led initiatives. The Gorilla Token, which fuels this ecosystem, ensures ample liquidity, occupying 70% of the token distribution to maintain market stability.
A deliberate 10% of the tokens are designated for burning to enhance the token’s scarcity and value potentially. The remainder is split among marketing, exchange reserves, staking rewards, and a treasury, indicating a well-rounded strategy to foster growth and a stable financial future for the token.
However, the token distribution poses potential risks, with a substantial portion controlled by a select few, which could lead to a market correction if these holders decide to sell their stakes.
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Filed under: Bitcoin - @ February 11, 2024 3:26 pm