Why Klaytn (KLAY) Price Doubled in 24 Hours

The Klaytn coin (KLAY) was trading at around 0.1390 on Sunday. What made the price go as high as 0.2820 in less than 24 hours?

Klaytn is a layer-1 public blockchain focused on the metaverse, GameFi, and the creator economy. The blockchain has a block time of 1 second.

Recent developments in the KLAY ecosystem

Last Thursday, Three Kingdom Multiverse, a multi-game platform, announced the release on the Klaytn blockchain. This was the very first recent development in the series of significant developments in the blockchain. On the same day, the Phemex exchange listed KLAY/USDT on spot markets.

Later on Friday, Everstake, a decentralized staking provider, announced that they are a part of the Klaytn ecosystem. The stakers will get three times higher APR than other validators if they stake KLAY with Everstake.

The major announcement was on Sunday when the Klaytn team announced a governance proposal for the Klaytn block reward reduction. It recommended decreasing the block reward by one-third. The Klaytn governance council passed the proposal this Monday. The block rewards will reflect on-chain from mid-November.

On Monday, the Klaytn foundation announced a buyback. According to the announcement, Funds used for the buyback came from stablecoin reserves held by the Klaytn Foundation. The buyback is strictly limited to spot purchases from centralized exchanges only. The foundation will burn the KLAY purchases during the buyback.

KLAY: Technical analysis

Although the major developments, such as buyback, reduction of block rewards, and perpetual trading pair listing on the FTX exchange, were announced today, the coin has been pumping with exorbitant volume in the 4-hour timeframe since Friday.

Source: TradingView

It formed an inverse head and shoulder pattern on Sunday, with the neckline at 0.1508. The coin brokeout of the neckline with impressive volumes and retested it successfully before the next mega move upward. From the breakout point, KLAY rallied almost 100%

Source: TradingView

What next for the coin?

In 1-hour timeframe, KLAY brokeout from the range between 0.1777 to 0.2052 with the support of volume. Before being in this range, the coin went on as high as 0.2865 but sharply came down, forming a huge wick. The buyers may have absorbed the selling pressure, and the coin can continue to make higher highs after breaking out from this base.

Source: TradingView

Zooming out on a daily timeframe, the coin is battling the area of significant resistance. The resistance is from a 100-day Simple Moving Average (SMA) and 20-week SMA.

If KLAY makes a daily closing above these SMAs, accompanied by the breakout of the range in the 1-hour timeframe, it will be bullish for the coin.

Source: TradingView

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