Binance announced today (15) that it will list Degen (DEGEN), a memecoin developed on Coinbase's layer 2 Base network. Following the announcement, the asset's price soared 50%, currently trading at US$ 0.29.
When listed, DEGEN will be the first Base memecoin on Binance. BeInCrypto analyzed what could happen to the cryptocurrency in the short term.
Binance to List Degen on Its Futures Market
According to Binance, DEGEN began trading at 8:30 AM ET today. The exchange also mentioned that its users will be able to trade the token with up to 75x leverage. Interestingly, Degen’s listing on Binance is part of a series of memecoins that have been listed by the exchange recently.
As the price of DEGEN skyrocketed, so did its trading volume. According to Santiment, the meme coin’s value surged 131% in minutes.
High trading volume indicates increased market participation, increasing the likelihood of the trend continuing. On the other hand, low volume may suggest an imminent trend reversal. Thus, if the volume of Degen, which was initially a reward token for participants in the Farcaster Degen channel, continues to rise, the price may continue to rise.
Additionally, data from IntoTheBlock shows an increase in token holding time. The holding time indicator tracks the duration a token is held without being traded or sold, providing insights into investor behavior. When holding time decreases, it means holders are selling, which can lead to a drop in price.
However, as the holding time has increased, it suggests that DEGEN holders are avoiding selling, which is a positive sign for the token.
DEGEN Price Prediction: Meme Coin Targets $0.37
From a technical perspective, the 4-hour chart of the token on Base Chain shows that the Awesome Oscillator (AO) reading has increased.
The AO is a momentum indicator that compares recent market movements to historical ones using a zero center line. Price movements are plotted above or below this line based on a comparison of the 5-period and 43-period moving averages.
When the reading is negative, the momentum is bearish. On the other hand, a reading above the zero line, like now, indicates that the momentum around DEGEN is positive. If this continues, the token’s price could rise to $0.37.
However, if volume drops and momentum turns bearish, this may not happen. In that case, DEGEN may retreat to $0.18.
The article Binance announces listing and memecoin skyrockets 50% appeared first on BeInCrypto Brasil.