Bonfida price has defied gravity in the past few days. FIDA jumped to a high of $0.870, which was the highest level since May this year. It has rallied by more than 246% from the lowest level this year, bringing its total market cap to over $31 million. So, how high can Bonfida token soar?
What is Bonfida and why is it rising?
Bonfida is a blockchain project built on Solana’s blockchain. It is a project that bridges the gap between Serum, Solana, and the user. The network runs Bonfida Serum GUI, which is the platform for crypto trading on Serum. Further, it runs Serum API, Serum Dashboard, Soluble, and Bonfida Bots among others.
Bonfida price has rallied even as Serum and Solana goes through a turbulent period. Unlike other smart contract platforms, Solana had significant exposure to FTX and Alameda Research. At its peak, the two companies held most of the Solana coins. Similarly, Serum was founded by a team at FTX and Alameda.
Therefore, the collapse of FTX and Alameda Research had a significant impact on Serum, and therefore Bonfida. Indeed, Serum collapsed and was relaunched in a hard fork. Therefore, Bonfida price jumped as investors cheered the hard fork.
At the same time, its Solana Name Service (SNS) business has done well in the past few days, as shown below. Also, the developers re-enabled FIDA staking, meaning that people can now make money by just holding their tokens.
Bonfida price forecast
The four-hour chart shows that the FIDA price has been in a strong bullish trend in the past few days. As it rose, the coin rose above the key resistance level at $0.4846, the highest point since November 6. Bonfida also rose above all moving averages while the Relative Strength Index (RSI) has moved above the overbought level.
Therefore, there is a likelihood that the Bonfida price will retreat in the coming days. If this happens, the next key level to watch will be at $0.50. A move above the resistance at $0.80 will invalidate the bearish view.