Band Protocol price forms a small double-top as TVS retreats

Band Protocol (BAND/USD) has pulled back in the past few days as the recent crypto rebound fades. The token retested the important support at $2, which was a few points below the year-to-date high of $2.37. This price is about 100% above the lowest point in 2022.

Total Value Secured shrinks

Band Protocol is a leading inter-chain blockchain oracle built on Cosmos. The platform makes it possible for developers to bring external data to the blockchain. It competes with the likes of Chainlink, TWAP, and WinkLink.

Band Protocol provides its solutions to some of the biggest blockchain networks in the industry. Some of its core clients are KyberSwap, Loopring, Homora, and Injective Protocol. Loopring is a leading layer-2 network that provides a decentralized exchange platform.

BAND price has plunged from its all-time high as the total value secured (TVS) in its ecosystem has plunged. At its peak, Band Protocol was securing assets worth over $4 billion. Today, it secures only $351 million. This means that assets have declined by more than 90% from their peak.

The crash of Band Protocol’s TVS is an important thing because it helps to show how active the network is. However, it is worth noting that other oracles have seen their TVS crash from their peak in 2021. Chainlink, the biggest platform in the industry, has seen its TVS plunge from over $60 billion to about $11 billion.

There have been no major Band Protocol news in the past few weeks. The only key news was a community vote that passed a resolution to set the minimum gas price to 0.0025 uband. This vote helped to prevent spam on the BandChain and progress towards a sustainable decentralized ecosystem.

Band Protocol price prediction

Is it safe to buy Band Protocol? On the daily chart, we see that the $BAND price made a slow comeback after it plunged to a low of $0.926 in October last year. The coin’s rebound saw it reach a high of $2.37 on January 31st. It is hanging at the 23.6% Fibonacci Retracement level and is slightly above the 50-day moving average. The Relative Strength Index (RSI) has moved slightly below the neutral point at 50.

Therefore, Band Protocol will likely remain in this range as investors watch the price action in the crypto industry. Since it has formed a small double-top pattern, there is a possibility that it will have a bearish breakout to about $1.60.

Source