Klaytn (KLAY) prices jump 130% on back of bullish news

PATNA (CoinChapter.com) — Klaytn, a metaverse and gamefi-focused blockchain platform, saw its native token KLAY prices jump 130% within a week, going from Oct 21’s low ($0.12) to an Oct 27’s intraday high ($0.276).

The uptrend comes when the wider crypto market has been struggling against a global economic downturn, although Bitcoin (BTC) prices did needle above $21,000 on Oct 26.

On Thursday, KLAY’s price reached an intraday high of $0.276 from the day’s low of $0.21, jumping more than 31% in the process. However, the long upper wick on the day’s candle indicates the presence of bears near the upper price ranges.

If KLAY price continues its current trend, the token would likely rise to target resistance near $0.299. Moving above immediate resistance could help the Klaytn token price reach $0.35, a level KLAY last saw in Jun 2022, before corrections pare gains.

Meanwhile, the uptrend resulted in the near-vertical rise of KLAY’s RSI trendline. Currently, the momentum indicator is technically neutral, toying at the overbought threshold with a value of 68.99 on the daily timeframe.

Traders often consider overbought RSI levels an upcoming bearish trend reversal indicator. If a sell-off starts, the Klaytn token would likely fall below its 100-day EMA (blue wave) to test support near $0.233.

Moreover, a marketwide sell-off could cause KLAY’s price to fall to support near $0.199 before recovering.

Why Klaytn Prices Are Rising?

KLAY prices rallied after riding a wave of positive news and developments from Klaytn.

On Oct 20, Three Kingdom Multiverse, a multi-game platform, announced plans to launch its next game on Klaytn. In addition, on the same day, crypto exchange Phemex announced the listing of the KLAY/USDT trading pair.

Later, on Oct 21, decentralized staking platform Everstake shared that they were now a part of the Klaytn ecosystem. Furthermore, the announcement invited stakers with a promise of an APR 3 times higher than other validators.

Also Read: Shiba Inu (SHIB) Price Jumps 10% While Burn Rate Spikes – What To Expect

However, the biggest announcement came from the Klaytn team when it shared details of a governance proposal for reducing block rewards. The proposal advocated reducing block rewards by one-third of the current value.

On Oct 24, Klaytn’s governance council passed the proposal and also announced a buyback program. Per the announcement, the team made the decision to stabilize the Klaytn ecosystem after detecting abnormal fluctuations in the on-chain liquidity.

The buyback would reduce the active KLAY supply in the market, thereby boosting prices. Moreover, Monday also saw FTX stating its plans to list KLAY perpetual futures.

Wait, what! Crypto winter responsible for Google sales drop. Read here to know more.