NOIDA (CoinChapter.com)— The Reddit IPO resulted in the social media platform’s tokens surging recently as the company concluded its initial public offering (IPO), selling its shares at the top of its targeted range of $31 to $34 to raise $748 million. The IPO also helped add a spring to the steps of the crypto tokens associated with Reddit.
The firm’s existing shareholders sold 22 million shares, helping Reddit reach a valuation of around $6.4 billion on the launch day. Moreover, Reddit shares rose more than 62% WTD to reach an ATH near $75 on March 26 before falling victim to profit booking.
MOON And BRICK Consolidate in Response to Reddit IPO
MOON, the token of the r/Cryptocurrency subreddit, rose to an all-time high near $0.85 on March 20 in the run-up to the Reddit IPO launch. However, the token fell prey to profit booking afterward, dropping below the resistance near $0.67.
However, bulls entered the market before MOON price could drop to the 20-day EMA (red wave) support near $0.45, helping the token spike more than 35% on March 26. MOON price had a very positive response to the successful Reddit IPO, though bearish pressure against the token still remains.
The RSI for MOON remained neutral, with a score of 60.3 on the daily charts.
On the other hand, BRICK, a token linked to the r/FortNiteBR subreddit, did not have a very positive outing despite the Reddit IPO news. The token has repeatedly tried to break above the supply zone near $0.19 but with little to no success since bears are booking profits near the resistance level.
BRICK price would need a clear and strong breakout above the immediate resistance to increase investor confidence in the token once it starts rallying.
However, a continued downtrend could force BRICK’s price to *drop* further and test the support near $0.137. Moreover, breaching the immediate support might see the token continue its downward spiral, testing the support near $0.1 before recovering.
The relative strength index, or RSI, for BRICK was neutral, reading 60.01 on the daily charts.
DONUT Price Has A Bearish Reaction
DONUT painted a similar price action as the MOON and BRICK tokens. However, the DONUT price peaked around March 14 and has continued to trend downward since then, ignoring all bullish cues, including the Ripple IPO success news.
A slight spike as the Reddit IPO drew closer highlighted the interest from investors, though the general trend of the token remained downward. The spike in Reddit shares failed to revive DONUT’s price action, though the token showed some signs of life later during trading.
