Perpetual Protocol (PERP) Price Analysis And Prospect

Perpetual Protocol

We have been looking at the top coins and tokens with the hope to identify their trends and investment potentials, knowing that buying into a coin at the early stage could be instrumental in the benefits derived as profit down the line. We shall now look at Perpetual Protocol (PERP) which is presently ranked 98 according to Coinmarketcap.

As we have earlier seen, coins like this, around this market capitalization mostly rank up and down as the number of investors increase or decrease because there are many buying in while many other exit positions.

What is Perpetual Protocol?

Trading of derivatives has been the exclusive preserve of centralized exchanges. Things have changed with the advent of decentralized exchanges (DEX). Perpetual Protocol was launched in 2019 with the objective of becoming a decentralized market maker that makes very powerful tools available for traders.

The platform enables users to trade a wide range of assets with a leverage of up to 10X. It used the system developed by Uniswap to build a market maker exchange using the so-called vAMMs which differ from conventional AMM used by Uniswap and others. This peculiarity is based on the fact that Perpetual Protocol claims to be the first virtual automated market maker, unlike the decentralized exchanges such as Uniswap that are mostly automated market makers.

PERP Token Data

PERP Maximum Supply: 150 million

Circulating Supply:  68.7 million
24H trading Volume: $47.4 million

Market Capitalization: $647 million

Contract Address: 0xbc396689893d065f41bc2c6ecbee5e0085233447

Number of Token Holders: 8,514

Supported Exchanges

The prominent exchanges that have listed PERP are:

Binance, Uniswap, Kraken, Gate.io, OKEx, Sushswap, LBank, WazirX, Balancer, 1inch Exchange and CoinDCX.

Other supporting exchanges are FTX, Coinex, Pionex, Bitmart, MEXC, VCC Exchange, BKEX, AEX, Hoo, Hotbit, HitBTC, Tokocrypto, 0x Protocol, Mandala Exchange, Hotcoin Global, Azbit, Paraswap, THORChain (ERC20), AOFEX, ZT, Coinbene and Jubi.

What Are The Prospects of The Coin?

DEX are increasingly popular because of the automated market making that sometimes employs smart contracts. This eliminates the middlemen and is the reason why some CEX have developed DEX due to the demand for these platforms. 

What is The Market Trend?

Let us now look at the trend of the PERP token to understand if the price is going up or down. For this purpose, we shall rely on technical indicators to analyze the price action. 

A visual inspection of the one-month chart for PERP shows that the coin is in a downtrend. However, it is better to apply TA tools to ascertain this.

Using the moving average (MA), we can see that PERP is trading downwards based on 10-days and 20-days moving averages. This means that we may see lower values of the token in the coming hours and days. Nevertheless, the trend doesn’t seem so strong when we use the MA, so we have to apply a few other technical indicators to be sure the direction PERP token is headed.

PERP On RSI Indicator

With the RSI indicator, we can see that the PERP token is in the oversold region. The coin is largely oversold with the RSI at levels lower than 30. This shows that the reversal of trend is imminent and that we will see higher values for the crypto coin. This is in contrast to the signal that we got from the moving averages, which we noticed had weak curves. And the reason why we needed to see things from more than one perspective. Let us go further by checking the trend using yet another indicator.

PERP Trend Using The MACD Indicator

PERP ChartThe MACD chart shows that PERP is presently on low momentum. This is evinced by the fact that the reversal as seen from the RSI seemed short-lived. What we see is a situation where the impact of the reversal seemed short-lived. This means that PERP will likely continue in a downtrend or even trade sideways since we have not seen enough volume to be certain that the reversal seen from the RSI is sustainable in the short-term.

Price Action And Market Analysis

We have seen DEXs such as Uniswap in high demand, so there is no reason why PERP will not have an appreciable value over time. The token is trading at $13.57 at the time of this report, after an all-time-high of $21.50 on September 10. From the price action we have seen, PERP is in a descending channel and we will likely see the coin test the $10.66 support mark unless we see higher volumes in the coming hours and days.

What is The Future of PERP?

PERP has good prospects based on its utility in a decentralized exchange. This is the driving factor for the coin as it has always been for every successful token. Even in a downtrend, finding short-term support bases (white horizontal lines) is a good way to gain from the market and interested traders should exploit this strategy.

Conclusion

I’ll invest in this token if I were you. Of course we know that not everyone would afford all the available crypto investments out there. Nevertheless, some are naturally a good buy. 

 

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.