PATNA (CoinChapter.com) — Band Protocol, a cross-chain data oracle project, has lined up several bullish signals for its namesake token. BAND prices have been trending upward throughout February, primarily due to some partnerships, broad market trends, and bullish technical patterns.
A competitor to Chainklink, the project has partnered with Layer-2 (L2) blockchain platform Blast. According to the announcement, the partnership will help improve Blast’s infrastructure. Band Protocol also shared another update on the partnership.
In early February of this year, Blockchain Oracle announced its integration with XION.High-speed data queries, cross-chain compatibility, and customizable data feeds“To the developer.
In addition to these partnerships, another bullish signal for the Band Protocol token comes from the recent approval of the Bitcoin ETF, with expectations of similar performance to the Ethereum ETF in the coming months.
BAND forms a bullish technical pattern.
The movement of Band Protocol token price is ‘falling wedge‘It is likely to trigger some bullish indicators for BLOW.
A pair of converging trend lines forms a descending wedge pattern. This pattern occurs when an asset’s price makes lower highs and steeper lows than the highs.
Familiar patterns usually indicate a possible bullish reversal. Typically, the target price of a pattern is equal to the widest distance between the trend lines at the beginning of the pattern plus the breakout point.
A significant breakout can signal strong market confidence, making the trend more likely to continue.
Following technical analysis rules, BAND price could surge nearly 123% as the pattern unfolds, reaching the theoretical price target near $4.7.
BAND prices continue to rebound
Meanwhile, bulls are trying to push the token price past the supply wall near $2.224. Price level BAND last closed in February 2023. However, the supply wall near $2.22 continues to defy any recent upward trend for the token.
The long upper wick of the recent daily candle continues to highlight bearish pressure on FLOW.
However, a break above immediate resistance could help BAND price rally towards resistance near $2.35 before pulling back.
Band Protocol’s recent rally has caused the Relative Strength Index (RSI), a momentum indicator that measures the magnitude of recent price changes, to exceed 70 and reach 70.94, indicating overbought conditions. Because overbought RSI levels typically precede a bearish reversal or consolidation phase in an asset, traders often view these occurrences as a sell signal.
In summary, if the bull market evaporates, BAND price risks falling to resistance near $2. Moreover, a break below the immediate resistance may force the token to test support near $2.35 before recovering.