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  • Band Protocol breakdown extends under the 100-day EMA, aiming for support at the 200-day EMA.
  • Data by Santiment shows that some whales are accumulating tokens as the price nears critical support.

Band Protocol users become accustomed to declines since its listing on Coinbase. The token embraced an impressive rally following the listing, which saw it almost close in on the critical resistance at $18. However, after forming a double top pattern as previously discussed, the token started to trim the gains that had been accrued. Meanwhile, BAND has dived 60% since the listing on Coinbase and is doddering at $6.91 at writing.

Band Protocol partners with MANTRA DAO

As a network, Band Protocol is reported to have signed a partnership with MANTRA DAO to allow the latter to have access to the former’s oracle network. This is the second partnership in September as the network collaborated with Tron to expand the DEFi ecosystem. The collaboration will see MANTRA DAO operate a validator node on Band Protocol mainnet. On the other hand, Band Protocol users will have ‘delegative’ power on MANTRA DAO, which allows them to earn rewards from both networks.

Band Protocol Shifts the focus to 200 EMA

The daily chart displays a bearish picture for the DeFi token. The 100 Exponential Moving Average (EMA) has been lost as support. Moreover, the Relative Strength Index (RSI) illustrates a stronger sellers’ grip as it closes in on the oversold region. If the situation remains unchanged in the near term, BAND/USD could spiral further. The 200-day EMA ($4.88) is presenting itself as a formidable support area. Perhaps on testing the 200 EMA, bulls will regain control over the price and forge a recovery.

BAND/USD daily chart

BAND/USD price chart

Band Protocol on-chain analysis

According to IntoTheBlock GIOM, Band Protocol’s most significant support lies between $2.65 and $4.52, confirming the 200 EMA. It is crucial that this support, which saw 740 addresses purchase 17.88 million BAND in the past, be guarded at all costs to avoid more bleeding.

Band Protocol GIOM chart

BAND Protocol GIOM

Intriguingly, data by Santiment, one of the leading on-chain data analysis platforms, shows that some whales have started adding more tokens to their holdings. For instance, wallets holding between 10,000 and 1,000,000 Band increased from 30 on September 12 to 38 on September 16. Similarly, addresses holding between 100,000 and 1,000,000 BAND rose from 30 to 32 in the same period. In other words, investors expect a reversal in the price as BAND seeks formidable support above the 200 EMA.

BAND Protocol holder distribution 

BAND/USD price chart

Looking at the other side of the picture

The short term hourly chart shows the formation of a descending trendline. The areas around $6.85 appear to be coming up as crucial support, likely to invalidate the expected slide to the 200-day EMA. The RSI in the same time range has started to recovery, putting more emphais on a possinle reversal.

BAND/USD 1-hour chart

BAND/USD price chart

If the bulls reverse the price while holding dearly to the possible support at $6.85, a breakout beyond the wedge patter will place BAND in a recovery path sooner than expected. Of course, resistance is expected at the 50 EMA in the hourly range, but if overcome, Band protocol will quickly tackle the next seller congestion at $7.50.