Gnosis (GNO) goes to hit record high following a 50% intraday pump; here’s why

Image by Pezibear from Pixabay
Image by Pezibear from Pixabay

Key Takeaways:

  • Binance announced the listing of Gnosis (GNO) on its exchange.
  • Reacting to the news, Gnosis’s token GNO jumped 47% intraday.

NEW DELHI (CoinChapter.com) — DeFi platform Gnosis’s native token GNO is now available for trade on the Binance, the world’s largest cryptocurrency exchange. Binance’s announcement also details GNO pairs available for trading- GNO/BTC, GNO/BNB, GNO/BUSD, and GNO/USDT.

Reacting to the news, GNO prices jumped 47% between August 30’s low to high levels. Gnosis is a DeFi platform that aims to provide an open-source infrastructure for prediction markets built on the Ethereum blockchain.

What Is Gnosis?

Gnosis aims to build infrastructure for decentralized applications that act as forecasting tools and information sources for predictive assets. In detail, a prediction market is similar to a crypto exchange, but instead of trading assets, users trade contracts dependent on the occurrence of future events.

Prediction markets create a new financial derivative by letting people ‘bet’ on some economic feature. For example, a trader can bet on inflation rates. If someone bets that inflation would rise, they can safeguard their financial position as their bet would payout once rates increase.

Also Read: Turkish investors lost $119 Million in an alleged Dogecoin Mining Scam.

In addition, prediction markets are also helpful for discovering information about likely future events.

Often, regulators restrict the working of prediction markets. However, cryptocurrencies might help decentralize prediction markets, making them accessible across the globe.

Gnosis is a blockchain that helps users trade cryptocurrencies that represent event outcomes on the open market. Martin Köppelmann and Stefan George founded Gnosis in 2015 as part of ConsenSys. In 2017, Gnosis separated from ConsenSys to become an independent company.

Gnosis uses three interoperable product lines- Apollo, DutchX, and Gnosis Safe. Apollo is a prediction platform that lets users create their tokens representing information, incentives, or ideas. DutchX acts as an exchange where users can trade their tokens. Finally, Gnosis Safe is a wallet that interacts with Ethereum apps.

Apart from GNO, Gnosis uses a second token, OWL, that helps pay fees on the Gnosis prediction market platform. GNO’s primary function is to generate OWL tokens. Also, users can pay fees with various Ethereum tokens other than OWL.

Moreover, OWL acts as a collateral token for the Gnosis conditional token framework. It is a dollar-pegged token, which means it is equivalent to $1.

GNO’s Price Charts

Most likely reacting to the listing news, GNO reached a new ATH of $433.82 on August 30. Though GNO jumped 47.05% from Monday’s low of $295 to the day’s high of $433.82, prices pulled back soon.

GNO prices moved above their 50-Day (Green) and 200-Day (Red) Moving Average trendlines on July 21, making it bullish across all time horizons.

GNO, Gnosis (GNO) goes to hit record high following a 50% intraday pump; here’s why
GNO charts new ATH on August 30. Source: GNOUSD on Tradingview.com

If the current rally fails, GNO has support at $290.68 and then near its 20-Day (Blue) Exponential MA trendline at $267.75. Moreover, continued sell-off may bring the support at $257.05 into play.

Also Read: Tezos (XTZ) price doubled on blockchain upgrade and institutional adoption FOMO in a month.

On the other hand, immediate resistance for the Gnosis token is at $379.34. However, if bulls break above primary resistance, the next resistance target would be at $435.

Trend-based momentum oscillator MACD charted a bullish crossover for GNO on August 23. In detail, a bullish crossover occurs when the MACD line (difference between 12-Day and 26-Day EMA) moves above its signal line (9-Day EMA of MACD).

MACD for GNO turned bullish, but RSI is in overbought regions. Source: GNOUSD on Tradingview.com
MACD for GNO turned bullish, but RSI is overbought. Source: GNOUSD on Tradingview.com

Bars on the MACD histogram, which plots the difference between the MACD line and the MACD signal line, are positive. However, the relative strength index is 75.14, which is in the overbought regions. An RSI above 70 often predicts a trend reversal, which might worry the bulls.

At the time of writing, GNO was trading at $341.95, up 15.92% on the day.

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