During the previous week, Gate Token [GT] demonstrated impressive performance by recording significant price gains.
As a result, CryptoCrypto decided to analyze the token’s on-chain data to determine potential price targets for the upcoming days.
Strong Bullish Trend for Gate Token!
According to CoinMarketCap data, the price of GATE surged by almost 24% over the past seven days.
Currently, GT is trading at $16.10, boasting a market capitalization exceeding $1.42 billion, positioning it as the 71st largest token.
Notably, along with the bullish price momentum, the trading volume of GT escalated significantly in recent days.
An uptick in volume during a price uptrend typically signifies potential for further price appreciation. This recent surge in value also positively influenced the token’s social metrics.
For instance, GT’s Social Volume remained elevated, indicating its popularity, while its Weighted Sentiment showed an increase, signaling growing bullish sentiment towards the token.
Evaluating Gate Token’s Future Trajectory
Subsequently, CryptoCrypto examined additional datasets to gauge the likelihood of the ongoing bull run extending further. According to our analysis of Santiment’s data, GT’s MVRV ratio rose, forecasting a potential price upsurge in the days ahead.
It was interesting to observe that as the token’s price increased, its network activity also saw a rise, evident from the uptick in daily active addresses.
Nevertheless, after a sharp incline, Gate Token’s network growth began to decelerate, indicating a decline in the creation of new addresses for token transfers.
Despite the recent bullish surge, several concerns loom for the token. For instance, its Relative Strength Index (RSI) indicated an overbought condition, typically signaling an impending price correction.
Furthermore, the Chaikin Money Flow (CMF) displayed a downward movement, suggesting increased selling pressure on the token—a potential precursor to a price pullback.
In the event of a correction, investors may witness Gate Token retracing to $13.9. A further decline could potentially see GT dropping to the $10.8 level.
However, if bulls maintain dominance in the market, it will be crucial for the token to surpass the $16.9 resistance level to sustain the ongoing bullish momentum.