Since its recent introduction on Binance, CoW Protocol [COW] has garnered considerable attention in the crypto space.
The announcement of the COW/USDT spot trading pair on Binance on November 6th ignited a remarkable price rally.
COW’s price experienced a staggering 220% surge within a day, moving from $0.24 to a high of $0.77 before settling at $0.54 at present, as traders capitalized on the increased exposure.
As per CoinMarketCap, the current price represents a significant 16% gain in the last 24 hours.
Examining the Price Movement of COW: Is a Correction on the Way?
While the initial price spike of COW showcased strong bullish momentum, concerns arose regarding its sustainability.
A close analysis of COW’s daily chart by CryptoCrypto revealed an overbought condition.
The token was observed trading above the upper Bollinger Band, indicating increased volatility as the bands expanded.
The Chaikin Money Flow (CMF) indicator stood at -0.06, falling below the zero line, suggesting that some investors were taking profits, potentially leading COW to seek support at $0.35.
A breach below this level might drive the price down to $0.30, a critical support level close to the 20-day moving average.
Failing to hold at this level could trigger a bearish trend, with the price potentially dropping to $0.24, or in a worst-case scenario, $0.16.
COW and CETUS Debut on Binance
Aside from COW, Binance also welcomed Cetus Protocol (CETUS) on the same day, reflecting the increasing interest in these protocols.
CoW Protocol functions as a meta-DEX aggregation platform on the Ethereum [ETH] blockchain, optimizing trade executions through trade intents and batch auctions to obtain the best market prices.
On the other hand, the Cetus Protocol operates as a DEX with a liquidity protocol concentrated on the Sui [SUI] and Aptos [APT] blockchains.
The Seed Tag Label
It is noteworthy that the listing of COW and CETUS on Binance comes with the application of the Seed Tag designation, introduced by the exchange in July 2023 to identify innovative projects.
This label indicates that these tokens may exhibit higher volatility and risks compared to other listings on the platform, now encompassing all tokens formerly in the Innovation Zone.
Expanding Beyond Spot Trading: COW’s Growth Potential
Binance’s announcement extended beyond spot trading, incorporating COW into various services on the same day, such as Binance Simple Earn, Buy Crypto, Binance Convert, Binance Margin, and Binance Futures.
Moreover, COW support will be added to Binance Auto-Invest on November 7th, signaling broader integration into Binance’s trading ecosystem and presenting a promising outlook for traders and investors.