Serum crypto price has rallied in the past three days.
It has risen as Solana and other Sam coins like Near and Bonfida rose.
Serum price has staged a strong recovery as the so-called Sam coins rallied. SRM has risen in the past three straight days and soared to a high of $0.20, the highest level since December 16. It has risen by more than 60% from its lowest level in December. It has a market cap of more than $48 million. Other Sam Coins like Ren, Solana, and Near Protocol have also rallied.
Sam Coins rally
Sam Coins is a group of cryptocurrencies that are associated with Sam Bankman-Fried, the founder of FTX and Alameda Research. They include coins that SBF funded and had a role in their management. In most cass, most Sam coins have tumbled by double-digits after the implosion of SBF’s empire. On Tuesday, he pleaded not guilty, meaning that the case will move to full trial this year. Analysts believe that he will be jailed for a long time because his lieutenants have pleaded guilty and agreed to cooperate.
Serum had a spectacular collapse in November. For starters, Serum was one of the biggest DeFi projects in Solana. At its peak, it had over $1 billion in total value locked (TVL). The network allowed cross-chain swaps and a decentralised automated order books. It was similar to other popular DEX platforms like Uniswap and PancakeSwap.
Beneath the surface, Serum had a major challenge. Instead of its public key being housed in a decentralized organization, it was instead held by FTX and Alameda. The two companies also owned most of the SRM tokens. As such, their collapse raised the possibility that they will liquidate their holdings as they exit. Therefore, the total value locked (TVL) in Serum has crashed to less than $500k and there are serious concerns about whether it will work.
It is unclear why the SRM price is soaring. A likely reason is that it is tracking the performance of Solana, which has soared recently because of the hype surrounding Bonk. The rally also is another reflection of the disconnect that exists between tokens and their fundamentals. For example, we have seen several dead coins like Terra Luna Classic do well in the past.
Serum price prediction
The daily chart shows that the SRM price has done well in the past few days. This recovery happened after the token found a strong support at $0.127, which was the lowest level in 2022. It remains below all moving averages while the Relative Strength Index (RSI) and Stochastic Oscillator tilted upwards. Therefore, there is a likelihood that the Serum price will resume the bearish trend in the near term. A drop below $0.10 cannot be ruled out.