Bitcoin-Backed Core Network Defies Flat Market With 218% Price Spike

CORE, a rising token in the crypto space, has been defying the flat crypto markets with a remarkable spike of over 218% in just one week.

CORE is the token of Core Network, a Bitcoin-secured, Ethereum Virtual Machine-compatible blockchain that uses a combination of proof-of-work (PoW) and proof-of-stake (PoS) as part of its consensus mechanism.

In the last 24 hours, CORE is actually down by 15% thanks primarily to a plunge over the last hour or so. The coin rose as high as $3.70 earlier today, and $4.10 on Monday. But over the last week, CORE has posted enormous gains.

In the last week, CORE has spiked by an impressive 218% even with today's dip, and in the last 30 days, it has surged by 317%. In contrast, Bitcoin has only gone up by about 1% today, and it's down by 4% in the last week and effectively flat over the past 30 days.

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

Later on, the Core Network also announced that ZAN, the Web3 brand of Ant Digital Technologies, partnered with the Core Foundation to become a validator on Core Chain. Additionally, CoreDAO announced a new NFT marketplace to run natively on its blockchain and launched CoreBTC as a way to bridge BTC to the Core Chain to boost its ecosystem in what they defined as the “BTCfi revolution.”

For those paying more attention to the charts, CORE looks solidly bullish, with the coin experiencing a heavy pump phase—whether it’s healthy or not remains unclear thus far.

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

It is difficult to perform proper technical analysis when an asset behaves like CORE is doing right now, but for what it’s worth, technical indicators for CORE also look solidly bullish. The exponential moving average (EMA) gap between the EMA10 (10-day) and the EMA55 (55-day) marks as of Wednesday morning is widening, indicating that new traders are making more money in the same amount of time than those who bought the coin before them.

The Relative Strength Index (RSI)—which measures the dominance of bulls or bears in the markets—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 a price trend—is at 66 points, which is unusually high as a mark of just 23 points would suggest a trending coin or token.

However, these numbers could suggest that the markets are being driven more by a FOMO (or “fear of missing out”) sentiment than natural market mechanics. The spike is so unusual that a 30% crash to around $2.50 wouldn't negate the bullish outlook, because the coin would still be bouncing on top of its EMA10 support.

This appears to be the course of action that the coin is taking in today's currently forming candlestick. A chart with 4-hour candlesticks shows that the price is slowly retracing, potentially heading to the aforementioned support which is shown in the red area.

Edited by Andrew Hayward