- Klaytn price has done well in the past few days.
- The developers is implementing a buyback to burn program.
Klaytn price has done well this week as investors cheer the recent developments in the ecosystem. KLAY rose to a high of $0.2854, which was the highest level since August 17 of this year. It has risen by more than 116% from the lowest level this month, giving it a market cap of over $776 million.
Why is KLAY price soaring?
Klaytn is a fast-growing blockchain project that has smart contract features. It is an Ethereum rival that makes it possible for developers to build quality projects in industries like decentralized finance (DeFi), gaming, non-fungible tokens (NFT), and wallets among others.
Klaytn has been used to build a number of projects like BC Game, Crypto Gold Impact, Crypto Premier League, and BirdTonado among others. It is mostly used to build projects in the metaverse industry.
Klaytn price has risen sharply this week as investors react to several important announcements in the ecosystem. First, the developers announced that it will do a major buyback of KLAY tokens soon. The buyback is because of several abnormal fluctuations in on-chain liquidity.
Find out more about how to buy Klaytn.
Klaytn is doing the buybacks from its reserve stablecoins. Also, the coins being bought are in the spot market and will then be burned. Therefore, the recent KLAY price rise is partly because of this additional buying by the team.
Klaytn price is also rising after the community voted to reduce block rewards. The proposal is for the community to reduce existing block rewards by a third. Doing this will reduce the amount of KLAY emission starting from November.
Meanwhile, KLAY is rising because the fear of missing out (FOMO) has set in in the market. Historically, cryptocurrencies tend to rally sharply when they see major movement. It has also been supported by the rebound of popular coins like Cardano and Bitcoin.
Klaytn price prediction
The hourly chart shows that the KLAY price has made a strong bullish comeback in the past few days. As it rose, the coin managed to move above the 25-day and 50-day moving averages.
Oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the overbought level. It is also slightly above the important support at $0.2325, which was the highest point on October 25.
Therefore, the pair will likely pullback in the coming days as profit-taking sets in. If this happens, the next key level to watch will be at $0.2300.
