The Bitcoin-backed Core Network’s #CORE token has had a bullish week, outperforming BTC itself and other major cryptocurrencies. ·Antonio Lanz

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CORE is a rising coin in the cryptocurrency space, defying the crypto market’s lackluster performance by surging over 218% in just one week.

CORE is the token of the Core Network, an Ethereum Virtual Machine-compatible blockchain secured by Bitcoin that uses a combination of Proof of Work (PoW) and Proof of Stake (PoS) as part of its consensus mechanism.

CORE is actually down 15% in the last 24 hours, mostly thanks to the plunge in the last hour or so. Earlier today, the coin rose to $3.70 and on Monday it rose to $4.10. But in the last week, CORE has seen huge gains.

Last week, CORE surged an impressive 218% despite today's dip, and over the past 30 days, it's surged 317%. By comparison, Bitcoin is only up about 1% today, having fallen 4% last week, and is effectively flat over the past 30 days.

In terms of fundamentals, a few announcements may have sparked interest in the coin. Last month, Core Venture Network (CVN) announced a $15 million regional ecosystem fund for projects in Africa, Latin America and Southeast Asia. This follows the launch of a $5 million Core Africa Innovation Fund in January.

Subsequently, the Core Network also announced that ZAN, a Web3 brand under Ant Financial, had partnered with the Core Foundation to become a validator on #CoreChain . In addition, CoreDAO also announced a new NFT market that runs natively on its blockchain and launched #CoreBTC as a way to connect #BTC to the Core Chain to drive its ecosystem and achieve what they define as the "#BTCfi revolution".

For those paying more attention to the charts, CORE is looking very bullish, with the coin going through a strong upward phase – so far, it’s unclear whether it’s healthy.

The market is pretty hot, and the sentiment shows: the token has grown from a total market cap of $500 million and a total daily trading volume of less than $10 million on March 22 to a market cap of $2.7 billion and a total daily trading volume of 500 million Dollar.

It’s hard to do a proper technical analysis when an asset is behaving like CORE is currently behaving, but for what it’s worth, CORE’s technical indicators are also looking very bullish. As of Wednesday morning, the exponential moving average (EMA) gap between the EMA10 (10-day) and EMA55 (55-day) markers is widening, indicating that new traders are making more money in the same amount of time than traders who bought the coins in front of them.

The Relative Strength Index (RSI), which measures the dominance of bulls or bears in the market, is currently at 79 points, meaning that for every 100 people trading the coin, 79 are buying it. The Average Directional Index (ADX), which measures the strength of the price trend, is at 66 points, which is unusually high as a mark of just 23 points indicates a trending coin or token.

However, these numbers may suggest that the market is driven more by FOMO (or "fear of missing out") emotions than natural market mechanisms. The rise is so unusual that even a 30% plunge to around $2.50 will not negate the bullish outlook as the coin will still bounce above the EMA10 support.

This appears to be the course of action the coin has taken in the candlestick it is currently forming today. The 4-hour candlestick chart shows that the price is slowly retracing towards the support level shown in the red zone above.

Edited by Andrew Hayward

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.