The cryptocurrency GAS has seen a remarkable price surge over the past week, gaining more than 70% from $2.4 to over $4. Many in the crypto community have been wondering what is driving this sudden pump. According to expert trader Wolf of Neo, the price action is likely related to recent news out of Hong Kong.
What you'll learn 👉
Hong Kong Announcement Sparks Utility Speculation
Gas is the utility token used alongside Neo for transactions and interactions on the Neo blockchain. Wolf of Neo pointed to a recent announcement from Neo founder Da Hongfei about plans to create an Ethereum Virtual Machine (EVM)-compatible sidechain for Neo that would increase the utility of both the Neo and Gas tokens.
This news of potentially greater utility for Gas in the Neo ecosystem seems to have sparked speculation fuelling the token’s dramatic price run. As Wolf of Neo summed it up, “If you’re wondering why $GAS has been pumping then you may want to read this coming out of Hong Kong.”
Trader Predicted Continued Surge to $4 Range
The price action has played out largely as predicted by trader Honeyx, who four days ago called for Gas to continue surging past resistance levels to top out around $4.4. Honeyx advised traders: “Once [$GAS] cleared it’ll go upto $4.4.”
Today, with Gas crossing $4, trader ThinkingAlts affirmed that the token’s impressive run was not over yet, tweeting: “$GAS doesn’t seem to stop anytime soon.”
Profit-Taking Advised Around Current $4 Level
Based on the analysis and forecasts, traders who got in sub-$3 may want to consider taking some profits around the current $4 price level. However, if the bullish momentum continues, Gas could see further gains ahead. Either way, the mystery behind the pumps appears to be cleared up thanks to the Hong Kong utility news.
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