- BAND, the native token of cross-chain decentralized oracle Band Protocol, rallied 30% in five days, but could decline in Q1.
- The Protocol partnered with Celo, a mobile-oriented fintech company.
YEREVAN (CoinChapter.com) – Band Protocol started Q1 2022 with a 30% uptrend, consistent with the Inverse Head and Shoulder formation printed on the daily chart. The latter features three consecutive dips, with the middle one (the Head) lower than the remaining two (the Shoulders). A mutual Neckline connects the starting points of all three dips and prevents a breakout until the formation is complete.
The IH&S is a bullish pattern, and it predicts a surge equal to the distance between the Head and the Neckline. BAND token came close to hitting the setup’s price target at $7.50 but fell 10% short. As of Jan 5, the BAND/USD exchange rate stood at $6.52.
The weekly chart confirmed the short-term bullish prognosis but dampened the chances for a large-scale rally. In hindsight, the digital asset exploded 5,540% Q2-Q3 2020 and entered a consolidation phase that has lasted over a year. As a result, BAND formed a Descending Triangle pattern that could see the token decline in Q1 2022.
The Triangle features a near-horizontal support line and a descending resistance line that capped BAND’s breakout attempts since April 2021. The formation suggests a short-term uptrend, a resistance retest, and a subsequent decline below the support line.
Meanwhile, the Band Protocol collaborated with Celo, a mobile-oriented financial tool.
Band Protocol’s Celo integration
Band Protocol team announced the partnership on Jan 5, aiming to help Celo “bring DeFi to the users of 6 billion smartphones in circulation.
With Band Protocol’s oracle, the data solution available to Celo Devoplers is not only end-to-end customizable, but also inexpensive and fully decentralized.specified the team.
Celo also asserted that the integration of Band oracles would enable multiple Celo projects to receive real-world data from over 230 Band-sourced price feeds. Thus, the company can expand its ecosystem and “reach into external data on legacy systems.” The mobile fintech company added that the integration would provide Celo with greater flexibility for the developers and users.
While InvestorObserver deemed the asset as “low-risk”, BAND could be headed for losses in Q1 2022, despite short-term bullish hints. The digital asset traded at $6.52 in the New York session Thursday and could pile 10% before the end of the week.