Almost a day ago, Bitget announced the merger of its native Bitget Token (BGB) with Bitget Wallet Token (BWB) (another digital asset in the Bitget Ecosystem). This strategic merger was set in motion to create a unified ecosystem token, potentially catalyzing a new phase of growth for BGB. It seems to work as intended since the token surged over 45% in the last 7 days to trade at a new ATH.
Bitget enhances token utility through BWB-BGB consolidation
The recent merger announcement has injected fresh momentum into BGB’s already impressive performance as the token trades at an all-time high of $6.86 at press time. This meteoric rise reflects growing confidence in Bitget’s ecosystem and sets the stage for potentially further gains.
Gracy Chen, Bitget CEO, hammered on the strategic importance of this merger in her statement. The BGB token is positioned to become a more versatile asset for Bitget by unifying the on-chain and off-chain use cases. This enhanced utility could drive increased demand and, consequently, upward price pressure.
The mechanics of the token swap are particularly noteworthy for traders. BWB holders will receive BGB at a ratio of 0.08563, based on the average closing price of BWB/USDT over the past week. This conversion process, set to commence imminently, will be followed by the destruction of all BWB tokens and an equivalent BGB airdrop to user accounts. The cessation of BWB trading on December 27 marks a clear transition point that traders should watch closely.
Bitget token technical analysis
Turning to the technical analysis, the monthly chart for BGB/USDT reveals a compelling bullish narrative. The price action shows a strong uptrend, with BGB recently breaking out of a consolidation phase, surging nearly 350% in a month. This breakout is supported by increasing volume, suggesting genuine buyer interest rather than a false move.
From the trading chart below, the Moving Average Convergence Divergence (MACD) reaffirms the overall bullishness of the token. The MACD line is seen to cross above the signal line and diverge upwards. When this occurs, it’s usually a sign of growing bullish momentum. This positive crossover and expanding histogram bars suggest that the uptrend may have more room to run.
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The Relative Strength Index (RSI) sits in overbought territory at press time, hovering above the 70 mark. While this might typically signal caution, it’s important to note that assets can remain overbought for extended periods in strong uptrends. The RSI’s sustained high levels align with the overall bullish sentiment surrounding BGB.
The recent consolidation zone provides a strong support area, which, if tested, could offer attractive entry points for bullish traders. On the upside, previous all-time highs may act as psychological resistance levels, but given the merger catalyst, these levels could be challenged in the near term.
What’s next for BGB price? Road to $10?
It is important to note that the post-merger period may cause the token’s price to swing as the market adjusts to the new, unified token. For this reason, traders should remain vigilant since anyone can fall victim to volatility that arises from major ecosystem developments like this one.
Although the technical indicators discussed in this article are inclined toward bullishness, applying risk management techniques is still important. Traders would do well to keep a close eye on trading volumes and key support/resistance levels as BGB navigates this exciting chapter in its journey.
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