Gnosis (GNO) jumps 60% in a week after COW token airdrop

MANALI (CoinChapter.com) — Gnosis (GNO) prices notched a nearly 60% surge over the last seven days, going from Mar 24’s low of $321.4 to reach an intraday high of $511.5 on Wednesday. Moreover, the recent uptrend also saw GNO reach $559.7 before corrections pared prices.

As the Gnosis token began the current week, bears moved in to aggressively sell on rallies, as the long upper wicks on the daily candles indicate.

For example, GNO began Mar 28 at $397.2 and jumped 41% to reach an intraday high of $560 before bears pulled back gains, and GNO closed the day at $443, up by 11% on the day.

However, the Gnosis token’s 20-day Moving Average (red wave) moved above its 50-day MA (yellow wave) to chart a golden cross. The pattern is a bullish technical signal that forms when a short-term MA line moves above a relatively long-term one.

Traders and analysts usually interpret the pattern as an indicator of a definitive uptrend in the market. Bulls could take cues from the golden cross to continue pushing the trend upward.

If GNO continues its uptrend, the Gnosis token would likely flip immediate resistance at $492. The Gnosis token would then move to challenge resistance near $520. Earlier, $492 acted as a resistance between Nov 28, 2021, to Dec 28, 2021.

Also Read: Terra hits new ATH after LUNA jumps nearly 46% in March.

Further upside movement would take GNO prices to resistance near $550, which earlier rebuffed Gnosis’s upside rally in 2021. Meanwhile, momentum oscillator MACD continues to be bullish for the Gnosis token.

Bars on the MACD histogram are expanding, indicating the MACD line (difference of 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD). Expanding positive bars indicate the strengthening of bullish momentum for GNO’s prices.

Overbought RSI Likely To Halt Gnosis Rally

The Gnosis token’s Bollinger band and relative strength index are forecasting overbought signals for GNO.

Bollinger bands consist of a simple moving average (middle wave) and an upper and lower band. The two bands are usually two standard deviations from the middle band. Therefore, when an asset’s prices break above the upper bands, it denotes an overbought condition.

GNO prices moved above the upper limit of the Bollinger band on Mar 27 and continued trading higher. As such, the possibility of a pullback is high. Additionally, GNO’s relative strength index remains overbought after moving above 70 on Mar 27.

GNO’s RSI is currently overbought, clocking 79.99 on the daily charts.

If the Gnosis token has exhausted its bull run, GNO’s prices could fall to immediate support near $456. Next, a marketwide sell-off could see GNO testing support near $428. Finally, a sustained downtrend could bring support near $404 into play.

Also Read: Holochain rally loses steam after HOT jumps 28% in four days.

$404 acted as support for GNO between Nov 27, 2021, and Dec 29, 2021.

COW Airdrop Adds Bullish Cues

The miner extracted value (MEV) is a feature that helps miners run certain exploits to help increase their profit margins at the expense of traders. Miners can increase their profitability by including, excluding, or reordering transactions within the blocks they produce on the Ethereum (ETH) network.

The Gnosis Protocol is transitioning to Coincidence of Wants (COW) Procotol, an interface that offers traders protection from MEV. CowSwap protocol airdropped COW tokens to GNO holders based on the number of tokens staked during a snapshot taken in early Jan.

Furthermore, GNO holders who staked GNO on the protocol for more than a year would receive an extra 5% COW tokens. CowSwap can help traders get better deals on swaps while avoiding MEV related losses.