The red-hot PolySwarm price suffered a big reversal as some investors took profits amid the ongoing crypto crash. The NCT token crashed from its all-time high of $0.1115 to a low of $0.0530, a 52% dive that brought its market cap to $114 million.
PolySwarm’s crash happened in a high-volume environment, as its 24-hour figure stood at over $114 million. This drop also coincided with the sell-off of other cryptocurrencies as coins like Bitcoin, Ethereum, and Solana plunged, and the market cap of all coins fell to $3.4 trillion.
NCT’s drop also erased its substantial gains since 2023, when it bottomed at $0.0072. Between that low and its current high, it soared by 1,500%.
PolySwarm is one of the few crypto projects focused on cybersecurity, a big industry valued at over $203 billion this year. Centralized entities like Palo Alto Networks, CrowdStrike, and Waze now dominate this industry.
PolySwarm’s strategy is to decentralize the industry using blockchain technology. To safeguard their operations, customers get access to features like early detection of threats, threat scoring, and threat hunting.
Users of its ecosystem are rewarded using the NCT token when they provide accurate threats to the network. This approach creates a win-win situation for the parties involved. Ambassadors are incentivized to find more accurate threats, while the end users become safer as cyber threats rise.
PolySwarm has become the biggest player in this industry. According to CoinGecko, other tokens in the cybersecurity industry are Shentu (CTK), Forta (FORT), Hacken (HAI), Audit (AUDIT), and Hapi (HAPI). All these tokens have a market cap of over $375 million.
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PolySwarm price technical analysis
In addition to market trends, there is a likelihood that the PolySwarm price crashed as it moved into the distribution phase of the Wyckoff Method. This is a highly popular theory in the financial market that identifies the phases that assets go through. It starts with the accumulation phase, which, in PolySwarm’s case, happened in 2023 and mid-last year.
The markup phase then follows accumulation, characterized by higher demand than supply. NCT has now moved to the distribution or the markup phase.
On the positive side, PolySwarm price has retested the key support at $0.054 and the upper side of the cup and handle pattern. A C&H pattern is one of the highly popular continuation signs. Therefore, by doing a break and retest pattern, the uptrend will likely resume in the near term as bulls buy the dip. If this happens, the token may rebound and hit the resistance at $0.10.
