Nervos Network’s (CKB) Price Surges on Favourable Fundamentals, but Technicals Signal Caution
The native token of Nervos Network, CKB, has seen its price go parabolic in recent weeks, surging over 290% in the last month. This rampant rally comes on the heels of Nervos’ first halving event in November 2023, which reduced CKB mining rewards by 50% similar to Bitcoin’s coded supply reductions.
“Nervos Network $CKB had its first halving close to 3 months ago and looks like it’s following in #bitcoins first few halving appreciation,” noted analyst Defi-DeGen. “As others have mentioned we may see $CKB over a few dollars eventually.”
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Show more +Halvings constrain the inflation rate of a cryptocurrency by cutting the flow of new tokens, helping to maintain scarcity and value. Many believe Nervos’ recently-reduced issuance rate will allow CKB to continue appreciating.
CKB Most Searched on Google
Driving further enthusiasm, CKB became the most searched cryptocurrency on Google within a 24-hour period earlier this week as interest in the altcoin intensifies.
“Incredible,” tweeted analyst CryptoFanTech about CKB’s peak search popularity.
Overbought Technicals Suggest Retracement Possible
However, at current levels, Nervos Network’s technical indicators are flashing signs of overextension. The daily relative strength index (RSI) for CKB sits at 91 – deeply overbought territory where retracements commonly occur.
Similarly, price has already far exceeded its 50 and 200 simple moving averages (SMAs). Some pullback may be needed before these SMAs catch up to provide support.
While strong project fundamentals could fuel continuation, traders should be aware of the potential for volatility in the near-term.
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