BAND Starts Recouping Losses From The 72% Drop: Price Analysis

Band’s Protocol BAND starts recouping losses from the 72% drop recently and the price action is contained between $5.5 and $7.3 as we can see today in our altcoin news.

A spike in demand for BAND that allows the coin to shoot past the resistance could lead the coin to $10. In the meantime, if the underlying support doesn’t hold, the prices could drop again as Band still consolidates in a narrow trading range. However, there are multiple indexes that suggest that a breakout is imminent. Despite the recent volatility on the market, Band Protocol was one of the very few assets that managed to do well. The cross-chain data oracles token skyrocketed more than 8000% and went from a low of $0.022 at the start of the year to make an all-time high of $18.20.

Given the huge gains posted over 2020, it seems like the investors took advantage of the increasing price action to realize the profits. The spike in selling pressure behind BAND led to another 72.5% correction which sent it over $5. Some investors still have fear as the losses incurred over the past two months brought a lot of damage, but it seems BAND starts recouping now. The TD Sequential index is now on a red eight candlestick based on the 1-week chart and it will present a buy signal in the form of a red nine candlestick in the upcoming trading sessions. This type of bullish formation is indicative of the one to four weekly candlesticks upswing or the start of the new upward countdown.

While the charts show that the BAND is poised to surge, the daily chart is mainly focused on two things. In this time frame, the Bollinger bands were forced to squeeze because of the dormant price action that was seen in the past month. These squeezes are a result of the prolonged consolidation periods which are often succeeded by higher levels of volatility. The longer the contraction the more violent will be the following breakout.

The index’s inability to provide a clear path for the direction of BAND only makes the area between the lower and the upper band a reasonable no-trade zone. Breaking over this resistance at $7.3 will validate the TD setup bullish scenario. In the meantime, moving past this support could lead to further losses. With the immediate upside target, the prices could increase to $10 upon the $7.3 resistance break while the optimistic outlook is supported by the development of the head and shoulders pattern on the 12-hour charts.