The ARK crypto price went parabolic and then erased most of the gains during the overnight session. The coin rose to a high of $0.9790, which was the highest level since April this year. It then pared back those gains and is currently trading at $0.6267. This drop brings its total market cap to about $104 million, according to CoinGecko.
Ark is a blockchain project that helps to solve the three most common blockchain trilemmas: scalability, security, and decentralizaton. It achieves the scalability challenge by having a multi-chain approach and through the ARK SmartBridge technology. On security, it uses a delegated proof-of-stake consensus mechanism while decentralization happens through bridgechain.
Ark has been around for more than five years. At the time, the developers created 125 million ARK tokens in the genesis block. According to its website, the number of products in the ecosystem has grown rapidly. They include the ARK Blockchain Framework, desktop wallet, deployer, nodem, mobile wallet, and marketsquare, The block height has jumped to over 20.3 million while the number of transactions have crashed hard recently.
The four-hour chart shows that the Ark crypto price has had a similar price action like other digital coins. It initially crashed to a low of $0.306 in May as the Terra ecosystem imploded. After this decline, the coin made a swift recovery and then started consolidating. It thn made a spectacular recovery on Wednesday as it jumped by 75% from the resistance point at $0.5645.
Now. the coin has pulled back as Bitcoin and other cryptocurrencies have erased this week’s gains. It has moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral point.
Therefore, the coin will likely retest the important resistance at $0.5645 and then resume the bullish trend again. This is in line with what happens in most periods after an asset rises above a key resistance or moves below a support. A drop below $0.5600 will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 05:21