Golem price has done well in the past few days as it outperformed most cryptocurrencies. It soared to a high of $0.54, which was the highest level since April of this year. At its peak, the GLM token was up by more than 255% from its lowest level this year. The coin was trading at $0.35 on Friday morning.
Golem is a flexible and open-source platform that aims to democratize access to digital resources. It is a lightweight protocol for building applications. Also, Golem has decentralized storage features that enable users to rent their digital resources, like idle computing power, and earn returns from it.
Indeed, the number of storage providers has been rising. There were 422 providers who provided over 12 terabytes of memory; GLM is the native token for Golen’s ecosystem. It is an Ethereum token that gives access to the network and is used to pay users who rent their storage in the network. Users can stake their coins to earn rewards.
It is unclear why Golem price has rallied in the past few days since there was no major news from the ecosystem. Therefore, a likely reason is that traders are pumping the coin. Recently, we have seen several pumps and dump schemes in the market. For example, in the past few weeks, vulnerable coins like Terra LUNA and LUNC surged only to crash this week.
The daily chart shows that the GLM price went parabolic this week as demand for the coin jumped. This rally saw it rise to a high of $0.54 and move above all moving averages. The coin has now pulled back and moved slightly below the important resistance level at $0.4015. The Relative Strength Index (RSI) has moved above the neutral point.
Therefore, there is a likelihood that Golem will resume the bearish trend as this hype fades. If this happens, the next key level to watch will be $0.25. A move above the resistance point at $0.40 will invalidate the bearish view.
This post was last modified on Sep 16, 2022, 06:38 BST 06:38