CoinRaces.cc, a popular cryptocurrency market observer, reported today that Tribe (TRIBE), the governance token of the Fei Protocol decentralized stablecoin project, has seen its price surge over 40% in the last 24 hours.
As background, Fei Protocol is an algorithmic stablecoin project aimed at providing stablecoin infrastructure and addressing some of the limitations of existing stablecoins around decentralization and efficiency. Tribe is its associated governance token, allowing holders to vote on protocol changes.
Breaking Out After Period of Sideways Trading
The Tribe token recently closed above a major resistance level from a technical chart perspective. This breakout, combined with increasing volume, helps explain the over 70% single-day price surge today.
The price increase also comes on the heels of an extended period of sideways trading. So the token may have been primed for a breakout.
Caution Still Warranted When Trading
However, one need to be cautious as the price action of Tribe has shown various cases of high volatility within the same day. These price swings are both bullish and bearish.
One of the notable volatility events happened on November 24, 2023, when the price sprung by close to 180% in a day, only to give back all those gains by the day’s end. These types of continuous high volatility could mean manipulation or lack of durable confidence by long-term holders.
For this reason, traders need to be careful when trading the token, despite the recent major pump. More stable footing likely needs to be achieved before pronouncing the token’s price revival has truly begun.
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