Key Takeaways:
- Rocket Pool price has maintained a steep descending trend since the beginning of the month and is believed to mark the bottom before resuming with the uptrend.
- The bears hold significant dominance and hence the price trend may flip enabling the bulls to uplift the price beyond the previous highs very soon.
- The interim signals point towards a continued bearish action, but in the long term, the RPL price is extremely bullish.
Rocket Pool, one of the Ethereum staking services recently made huge noise by securing $1 billion in terms of Total-Value-Locked (TVL). It’s a platform that allows users to connect with an Ethereum decentralized node operator or handle their own node. The price of its native token, RPL, surged significantly in the first few days of February and soared by more than 100%, enabling the token to enter the top 50.
However, the token began to plunge at the beginning of the month but continues to hold close to the gained levels. Besides, the platform is believed to release its long-awaited ‘Altas’ upgrade in early April which will allow the node operators to run their own Ethereum validators. These are called mini-pool with only 8 Ethers, halving the current requirement of 16 Ethers.
The auditors have reportedly finished their review of the Altas code and it may go live by the end of March or early April, just before the Ethereum Shanghai upgrade which may allow the stakes to withdraw their ETH. Therefore, the price rally of RPL is believed to rebound and maintain a fine upswing, but will the improvements in ranking impact the price?
Read More: Ethereum Price Prediction
Rocket Pool Token Technical Overview
Source: Tradingview
- The RPL price has been trading with a descending trend but within a falling wedge which is largely considered by experts to be bullish.
- The price has reached the lower support and is trying hard to set up a rebound to surge high and test the upper resistance.
- Meanwhile, the RSI which has dropped below the lower support has rebounded, displaying a bullish divergence.
- Besides, the strength of the rally could be weakened as the ADX flashes the possibility of a bearish reversal.
- Therefore, the price is believed to maintain an ascending consolidation with a reduced volatility.
Rocket Pool Token On-Chain Analysis
Rocket Pool MVRV-Z Score
Source: Santiment
The MVRV-Z score is the difference between the token’s market capitalization and the realized capitalization. It indicates whether the token is overvalued or undervalued which is based on the ‘fair value’ which is produced. If the score is hovering within the positive range, it is then believed that the market is thriving as the price is overvalued.
Besides, the MVRV-Z score which is within negative regions as in the case of Rocket Pool presently; indicates the bearish sentiments of the market. However, it also signals the bullish mindset of the investors as they continue to accumulate when these levels are negative.
Rocket Pool Daily Active Address
Source: Santiment
The volatility is the variation and fluctuations within the price; and one of the elements that impact the volatility is the daily active address (DAA). It is the count of the addresses that interact with the platform with the intention of either placing a trade or selling an asset. All the addresses, regardless of whether it is a buy address, a selling address, or a swap address, are considered, but only once a day.
The DAA levels has maintained a lowered level for quite a long time until a massive upswing was triggered in the last week of February. The active address count quickly surged beyond a three-digit value and has been sustaining at these levels. Therefore, more interactions over the platform may keep the network active and also impact the price.
Rocket Pool Network Growth
Source: Santiment
The network growth is much like the daily active addresses, but here, only the trading activity of the new addresses is considered. The rise in the network growth indicates the growing adoption and traction of the token within the crypto space. It is basically the count of newly created addresses in a day.
The network growth levels for Rocket Pool had been consolidating around the lower levels for quite a long time. However, it witnessed a massive spike during the last week of January and quickly dropped back to the lower levels. Presently, the levels are depleting and heading towards the south indicating a loss of interest with respect to the token among the market participants.
Additional Read: Top Altcoins 2023
Concluding Thought!
The Rocket Pool value displayed a significant price action in the past month as the prices drive high and also displayed a minor pullback. Meanwhile, the network activity has dropped heavily indicating a shift of focus of the traders away from the RPL price. However, the negative MVRV Z-score, which is rising high, flashes the possibility to go long in the coming days.
