Band Protocol’s RWA Tokenization Might Save It From A 38% Drop

Band Protocol's RWA
Band Protocol’s RWA Tokenization Upgrade

NOIDA (— Band Protocol, the blockchain oracle platform, plans to expand its ecosystem through real-world assets (RWA) tokenization. Recent upgrades could also help the protocol’s native token, BAND, continue its bullish price rally, though bearish risks against the token remain.

Band Protocol
BAND price action over the last 7 days. Source: CoinStats

BAND prices have been volatile recently, with the token moving between $1.44 and $1.6 over the last 7 days. However, the general trend for the Band Protocol token has been bullish, with BAND prices forming higher highs since May 2.

Yet, despite the bullish cues that the Band Protocol team is lining up, BAND price faces bearish risks from a technical pattern.

Band Protocol Putting Its Hopes In RWA Tokenization

The integration of real-world assets into blockchain through tokenization is revolutionizing asset liquidity and market dynamics. As markets evolve to include tangible assets like real estate and corporate bonds, the demand for accurate, decentralized data feeds grows simultaneously.

Band Protocol
Band Protocol did a Spaces discussion on RWA tokenization.

Band Protocol, facilitating this integration by delivering real-time, reliable data to blockchain platforms, is likely to benefit significantly. The protocol’s capability to securely feed essential data to various networks enhances its utility and potentially increases the intrinsic value of the BAND token.

These capabilities are set to expand with the upcoming Band v3 upgrade. The upgrade will boost transaction speed and cut costs, crucial for scaling to meet rising demand from tokenized assets.

Features like concurrent price streams and a new signaling hub will provide updated data feeds necessary for the accurate representation and trading of tokenized assets. The upgrades would likely help establish Bond Protocol’s dominance in the sector.

Furthermore, Band Protocol’s proven security record, with zero compromises or exploits, builds user and investor confidence. Strategic upgrades and RWA tokenization may boost market cap as tokenized assets gain mainstream acceptance.

Technical Setup Predicts Bearish Risks For The Token

Meanwhile, BAND prices have formed a bearish technical setup called the ‘bear pennant.’

Band Protocol's RWA, Band Protocol’s RWA Tokenization Might Save It From A 38% Drop
BAND price formed a bearish pattern with a 38% downside target. Source:

A bear pennant is a continuation pattern that features a period of consolidation with converging trendlines that follow a significant downward price movement in a cryptocurrency. Typically, this pattern leads to the price breaking out downward, continuing the prior bearish trend.

Volumes play an important role in verifying the pattern. During the consolidation phase, trading volumes usually decrease, confirming the pattern’s validity.

When the price eventually breaks out from the pennant, a noticeable increase in trading volume should accompany it. Traders calculate a bear pennant’s price target by applying the initial flagpole’s height at the breakout point.

As such, BAND price could fall to the pattern’s projected price target of $0.953 if it confirms the pattern, a drop of over 38% from current levels.

However, the project’s recent bullish cues might help BAND prices continue rallying higher, eventually invalidating the bearish pattern.

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