Usually, the market heats up quickly after trading. There is a certain uncertainty about whether it will fall back in the future. The following is a specific analysis:
Factors that may cause a callback
- Profit-taking pressure: The rapid rise in a short period of time has allowed some early investors and airdrop holders to accumulate considerable profits. They may choose to sell at high prices to cash out. Once a large number of profit-taking orders are concentrated and the market supply increases, it will bring pressure for prices to pull back.
- Technical adjustment needs: From a technical analysis perspective, the price has usually formed an ascending wedge, and the daily relative strength index (RSI) is hovering above the overbought area of 90%, which is usually a signal of an overheated market, indicating that prices have risen too fast in the short term and the market may need technical adjustments to digest the gains.
- Market sentiment volatility impact: The cryptocurrency market experiences significant volatility in sentiment. If the overall market sentiment shifts from the current optimism to caution or panic, investors' willingness to buy may weaken, leading to a pullback in the price of usual.
- Competition and substitution risks: The stablecoin market is highly competitive. Although usual has its unique advantages, it also faces competition from other stablecoin projects. If competitors launch more attractive products or services, it may lead investors to shift their funds, thus suppressing the price of usual and causing a pullback.
Factors that may continue to rise or maintain high levels
- Project fundamental advantages: Usual, as a secure and decentralized fiat-backed (RWA) stablecoin issuance protocol, possesses certain innovations and advantages. Its core product, usd0, is 100% backed by U.S. Treasury bonds, providing high stability and security, and offers considerable returns to users through mechanisms like staking, making it attractive to long-term investors.
- Market demand and application scenario expansion: With the development of the cryptocurrency market, the demand for stablecoins is continuously increasing. Usual, with its unique mechanism and advantages, is expected to be used in more application scenarios, such as decentralized finance (DeFi) and cross-border payments, which will further increase its market demand, supporting price stability or continued growth.
- Exchange support and traffic advantages: Being listed on large cryptocurrency exchanges such as Binance brings significant traffic and attention to usual. The support of large exchanges not only enhances the project's visibility and credibility but also provides investors with convenient trading channels, helping to attract more capital inflow and driving prices up or maintaining high levels.
- Community support and ecological development: Usual emphasizes community participation and governance, with 90% of token distribution allocated to the community. This transparent and fair distribution method enhances the community's trust and support for the project. At the same time, the project team encourages users to actively participate in ecological construction through initiatives like the usualx empowerment mechanism. As the community continues to grow and the ecology gradually improves, it will provide strong support for the price of usual.
