NEW DELHI (CoinChapter.com) — Blockchain bridging platform Multichain (MULTI) enjoyed a surprising price rally that sent Multichain token price soaring to multi-month highs on Jan. 23.
MULTI Price Rockets To $4
MULTI price rallied 167% to reach a daily high near $4 on Jan. 23 before profit booking pared some of the gains. The profit booking continued on Jan. 24, pushing the MULTI price down 18.6% to a daily low near $2.63 before bulls entered the market.
Due to the absence of any clear reasons propelling the token’s price rally, MULTI might drop to its 200-day EMA (green wave) near $2.5. Moreover, breaching the immediate support level could see the crypto token’s price falling to the 100-day EMA (blue wave) near $2 before recovering.
On the other hand, if the rally continues, the MULTI price could rally to the resistance near $3.33. Flipping the immediate resistance might help the Multichain token price rally to the resistance near $4.
A bearish cue for the token might come from its overbought RSI levels, currently scoring 71.81 on the day charts. Market participants traditionally consider overbought RSI levels a bearish signal since the pattern often precedes a pullback or a correction phase for an asset.
Multichain CEO’s Mysterious Return Powering MULTI Token
Honestly, no one knows why the Multichain token is rallying since there are no clear bullish cues for the project. The only news coming from the Multichain camp is about the supposed activity of its CEO, Zhaojun He, on Telegram.
In 2023, the Multichain team announced that it was shutting down the project after learning that the Chinese police had arrested its CEO.
Following Zhaojun’s disappearance, the blockchain platform shared it saw an unexpected outflow of crypto assets of over $120 million. Later on, Zhaojun’s sister transferred the remaining user assets to wallets under her control before pulling another disappearing act.
The circumstances surrounding Zhaojun’s arrest allegedly had links to a large-scale scam investigation in China. As a result, the incident had a significant impact on Multichain, leading to the arrest of several node operators and the seizure of assets
Since his disappearance, Zhaojun’s Telegram account has remained deactivated. However, the Multichain CEO’s Telegram status changed to “last seen recently,” fueling discussions about his potential return.
Fantom co-founder Andre Cronje weighed in on the matter, stating that the Telegram activity did not necessarily indicate Zhaojun’s release. Cronje claimed that his team was working with other impacted chains and the police to help recover users’ funds.
The Multichain CEO’s potential return likely generated the hype that attracted buyers to the market, with traders buying the news in anticipation of further rallies.
