The price of PowerPool (CVP) has spiked by more than 150% in just two days. It outperformed many other cryptos during this time, bringing a lot of attention to it.
A PowerPool team post on July 25 points to the main reasons behind the ongoing surge. The team acknowledged the recent challenge the community faced, noting that it has already recovered and is now stronger than before.
The ecosystem now boasts increased activities and more demand for their products. They attribute this to the general market’s recognition of PowerPool 2.0’s role in Web3 and AI. The growing momentum and positive market sentiment also show that their solution is becoming more recognized.
The product has several use cases, as highlighted by their team in another post on X. First, the ecosystem is in search of blockchain DeFi with low gas fees, high total value locked, and extensive user bases.
The blockchain already has some projects on its Ethereum blockchain. One of them is SupremeDAO, which leverages PowerPool’s grant for automated yield strategies. They also have Gnosis Chain, which is PowerPool’s first mainnet that works for automation and already has more than 100 active jobs.
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PowerPool has also automated operations for Gearbox Protocol and Partitura in the Arbitrum network, making it easier to manage complex tasks.
These are just a few of the protocol’s activities and utilities that are setting bullish sentiments.
These 3 CVP Price Metrics Warn Caution Short-Term
Although the CVP Price surge made the price break out of a descending channel, which could also add to the general bullish signal, there are some reasons short-term traders may want to be cautious about buying.
- The Relative Strength Index Indicator is already at 77. This is an extremely overbought level, and the price may retrace for a while before it continues its rally.
- Typically, when the price breaks out of a descending channel or trendline, analysts see the top of the channel as the next big target. In the case of CVP, the price has already reached that point, and many traders may start to take profit.
To buy, traders may need to wait for a break above the top at around $0.65 or look for buy signals following a retracement. - The MACD histogram is at its highest bullish level since December 2021, which means this move is not common for the token and may not be sustainable.
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