Why is Powerledger (POWR) Price Pumping?

Powerledger’s native token POWR saw a nice 22% price pump over the weekend to trade around $0.37, bringing its market capitalization to around $192 million. However, checking Powerledger’s popular Twitter account, which boasts 96k followers, there were no major announcements that could explain this latest surge.

Instead, it seems the price action for POWR is being driven more by technical and fundamental factors. POWR trading volume over the past 24 hours is actually double Powerledger’s market cap, indicating strong interest and buying pressure.

The token also saw a 4x return last month before consolidating back down to solid buy-in levels. Oscillators on the weekly timeframe are flashing a strong buy signal, with rapid influxes of buy orders coming in. POWR had a massive breakout in January to around $0.96 before pulling back to current levels, so traders may be anticipating another leg up.

With POWR’s daily RSI recently climbing to 63, it indicates the token is now in a short-term overbought territory according to the momentum indicator. An asset is typically considered overbought on the relative strength index when the reading crosses above 70, and oversold when below 30.

Source: Dexscreener

At the current level of 63, POWR’s RSI doesn’t yet show conditions of an extreme price high or evidence that the rally is exhausted. There is still some more room left for the upswing to continue before hitting overbought levels. The indicator can remain in this range between 30 and 70 for extended periods during a strong uptrend without deviating much.

Fundamentally, Powerledger is a leading blockchain-based platform for peer-to-peer renewable energy trading. The POWR token provides access and powers transactions on the network, which connects individual producers and consumers to buy and sell solar, wind, and other green energy sources without needing a middleman. More POWR held means more privileges on the platform that aims to decentralize and democratize the energy grid.

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With the surging interest and real-world adoption for Web3, decentralized finance (DeFi), and clean energy tech, it’s not surprising to see blockchain projects like Powerledger with real working products gaining traction.

If the technicals and on-chain data align, POWR could very well see another rally back towards its all-time high. Its unique value proposition also sets it apart from other crypto assets not backed by concrete utility.

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Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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