- Band Protocol sell signal comes on as the double-top pattern puts pressure on the price.
- BAND/USD path of least resistance is currently downwards; bulls anticipate support at $14.
After trading an incredible week, Band Protocol is facing the ultimate test that will see it either continue with the uptrend or succumb to increased selling pressure. The token has from August 22 scaled above several barriers. Prior to the bullish reversal, BAND suffered significant losses from $18.23 (August high). Support was embraced around the $10 level, which eventually gave way for the bullish action posted in the last couple of weeks.
At the time of writing, a retreat has already begun to take shape. Besides the negative impact of a double-top pattern, technical levels in the daily range highlight a strengthening bearish grip. For instance, the RSI is gradually moving downward after failing to cross into the overbought region during BAND’s second approach towards the barrier at $18.
The impact of a double-top pattern could be detrimental to the progress made by the crypto in the last couple of weeks. Therefore, establishing support above $14 could give bulls ample time to gather the strength needed to keep the uptrend intact.
The stalled price action and the impact of the double-top pattern continues to numb the momentum emanating from the recent partnership news between Band Protocol and Tron. The partnership will see the two networks explore Scalable Oracle Technology as well as ecosystem integrations. Tron has in the recent past been championing integration with the DeFi ecosystem and this partnership pulls it closer to achieving the goal.
BAND/USD daily chart
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