MAGIC price has become the best-performing cryptocurrency this week after a series of positive news. The token bounced back from its record lows and hit the psychological level of $1. It has jumped by more than 335% from its lowest level this year, giving it a market cap of over $200 million.
MAGIC crypto price soared on Monday and Tuesday after several cryptocurrency exchanges moved to list it. The most important one was Binance, which listed the token in its innovation zone. As a result, the token can now be bought and held by millions of users. In a statement, Treasure said that over $200 million worth of MAGIC token was traded on its first day.
Other exchanges also listed MAGIC on Monday. They include Huobi, Bybit, and Gate.io. In the past, most cryptocurrencies tend to rally when they have been listed by major exchanges. However, a closer look at these pops shows that they rarely last for a while. Instead, they tend to fizzle out as momentum wanes,
The other main MAGIC news was that The Beacon Settlement Cup started on Monday and is set to complete on Tuesday. The tournament will see 12,500 $MAGIC distributed to the top 16 players. As such, this tournament has brought more visibility to the network.
Further, the token rose because of the strong performance of Arbitrum’s ecosystem. According to DeFi Llama, Arbitrum has seen the total value locked (TVL) in its ecosystem soar to more than $1 billion, helped by GMX. It has also overtaken Polygon to become the biggest layer-2 network.
For starters, MAGIC is the native token for TreasureDAO, a leading gaming operating system on Arbitrum. The platform runs a DeFI platform known as MagicSwap that has a TVL of more than $70 million in total value locked (TVL). It also runs Trove, a platform where people can buy and sell Arbitrum’s non-fungible tokens (NFTs).
Some of the games in TreasureDAO’s ecosystem are BridgeWorld, BattleFly, and Smolverse. Analysts believe that Treasure could grow to become the biggest gaming and NFT platform in the industry.
The daily chart shows that the MAGIC crypto price has risen in the past two straight days. It rose and retested the important resistance level at $1. MAGIC/USDT has moved above the 25-day and 50-day moving averages while the RSI has moved to the overbought level.
Therefore, I suspect that the Treasure price will have a bearish breakout as momentum fades. If this happens, the next key level to watch will be at $0.56. A move above the resistance at $1 will invalidate the bearish view.
This post was last modified on Dec 13, 2022, 04:17 GMT 04:17