The Band Protocol price has been in a strong bullish trend in the past few hours. The token surged to a high of $2.61, which was the highest level on May 9th. This price was about 112% above the lowest level in May this year. In addition, its total market cap has jumped to $82 million.
What is Band Protocol?
A common challenge that blockchain developers face is that of adding external data to the on-chain ecosystem. For example, how do you add accurate and verifiable data about American stocks into a DeFi ecosystem?
This problem is usually solved by oracle networks that collect and clean data and then provide them to DeFi builders. The biggest oracle in the industry is Chainlink, which is now valued at over $4.4 billion. Other popular oracles are Band Protocol and WINKLink.
The Band Protocol price is rising as the developers continue expanding their platform. Last month, they launched their decentralized oracles on the Cronos mainnet. Before that, they launched on Celo and Oasis Network.
This month, the Band Protocol announced a partnership with Astar Network, which is a multi-chain smart contract platform on Polkadot. They also partnered with MEXC and Immunefi.
Still, the biggest challenge for the BAND price is the ongoing performance of the DeFi industry. Last month, Terra’s ecosystem crashed, which pushed more people from DeFi. As a result, the total value secured in the ecosystem has dropped sharply in the past few months.
Band Protocol price prediction
The four-hour chart shows that the BAND price rose to a high of $2.61, which was the highest level in months. It has then pulled back and is trading at $1.96, which is important support since it was the highest level on March 23rd. It remains above the 25-period and 50-period moving averages, while the Relative Strength Index (RSI) has moved below the oversold level.
The Band Protocol price has formed a break and retest pattern. Therefore, there is a likelihood that the coin will likely continue rising as bulls target the key resistance level at $2.25. A move below the support at $1.8 will invalidate the bullish view.