Five Signs That BAND’s 30$ Correction Is At The Start

There are five signs that can clearly show how Band Protocol’s BAND token and its correction of about 30% is only beginning so let’s find out more in the upcoming altcoin news today.

Band Protocol is one of the few best-performing crypto assets behind Chainlink. The altcoin increased by 300% month to date but had a 15% correction that started overnight. In today’s news, we will talk about the five signs that can show how the correction can only be at the beginning.

The cryptocurrency market is on fire currently with almost every asset posting major gains in the past few weeks. However, no other asset has been hotter than the decentralized finance and the data providing decentralized oracle space. Chainlink was setting some new highs recently and BAND has been following its footsteps. Both assets have been on a parabolic rally that when it will finally run out, the crash could end up being quite harsh.

BAND/USD has only corrected about 30% in the face of over 300% returns in the previous month. The asset also increased by more than 9000% since the March Crash. Just like bitcoin increased to $20,000 and then crashed to $3,200, Band Protocol and LINK will both be similar in the crash. Given the momentum in decentralized oracles, it’s quite hard to call the top just yet. However, there are five bearish signals that can be visible in one four-hour price chart that could be a sign for the start of the correction.

BAND/USD also corrected about 30% in the past day and now it is up to the bulls to regain the upper hand and to boost the prices higher or they are at risk of a serious crash now that the uptrend support line was violated. Losing these important uptrend lines is one of the five signs on the charts. The trading volume is also declining which suggests that the recent uptrend concluded and now investors are losing interest. Looking up at the theories we can see that the Average Directional Index shows the strength of the uptrend is waning.

After reaching the highest reading on ADX, the asset was turning downward since. Coinciding with the drop in strength, the bearish crossover on the Directional Movement Index suggests that the bears are taking over control. How far will the correction last is anyone’s guess but after the parabolic rise, the 80% correction is possible if the advance gets crashed. The Defi and oracle bubble could be bursting right now which will lead to a deeper crash than what we are prepared for.