- Band Protocol price went vertical on Monday.
- The network recently added Horizen EON into its ecosystem.
- Band’s futures open interest surged to over $34 million.
Band Protocol price went vertical on Monday as investors bought the token’s dip. It surged to a high of $1.50, the highest level since July 20th. It has surged by more than 66% from the lowest level this month, making it one of the top performers.
Band Protocol is one of the pioneers in the oracle industry. It works to ensure that developers can connect off-chain networks to the on-chain. For example, developers can integrate price feeds to its platform using this technology.
Band Protocol’s market share has faded in the past few months as many developers move to Chainlink, the biggest oracle in the platform. Data by DeFi Llama shows that the Total Value Secured (TVS) in Band stands at just $26 million while Chainlink has over $11 billion. Other oracles like WINKLink, Chronicle, Pyth, TWAP, and Binance Oracle have passed it.
It is unclear why Band Protocol price has surged in the past few days. A likely catalyst is that it was just selected by Horizen to be its primary oracle provider. Precisely, Band will power Horizen EON, sidechain for Horizen’s platform. Horizen EON is a layer-2 network that lets developers use the cross-chain transfer protocol (CCTP) for secure cross-chain communication and asset bridging.
Band Protocol price also jumped as crypto traders pumped the token. In most cases, we see many tokens being pumped during the weekend when there is limited volume. Also, the open interest in the futures industry jumped to over $34 million, the highest level since December last year.
Band Protocol price forecast
The daily chart shows that the Band Protocol crypto price bottomed at $0.953 in September and October. In this period, the token found strong resistance at $1.20, the highest point on October 23rd.
Band has also surged above the 50-day moving average while the Relative Strength Index (RSI) has moved to the overbought level. Other oscillators like Stochastic have also moved to the overbought point. Volume, which has been struggling, also jumped.
Therefore, the Band Protocol price will likely gain some more on Monday as traders start buying the coin. But these gains will likely be limited in the coming days, leading to a possible reversal.
