Band Protocol, the blockchain oracle platform, has announced plans to expand its ecosystem through the tokenization of real-world assets (RWA). This move is expected to not only contribute to the bullish price rally of the protocol’s native token, BAND, but also present some bearish risks.
Over the past 7 days, BAND prices have been volatile, fluctuating between $1.44 and $1.6. However, the overall trend for the Band Protocol token has been bullish since May 2, with prices forming higher highs.
Band Protocol recognizes the potential of tokenizing real-world assets and the impact it can have on asset liquidity and market dynamics. As the demand for accurate and decentralized data feeds increases with the inclusion of tangible assets like real estate and corporate bonds in the markets, Band Protocol aims to facilitate this integration by providing real-time and reliable data to blockchain platforms. This capability enhances the utility of the protocol and has the potential to increase the intrinsic value of the BAND token.
The upcoming Band v3 upgrade is set to further expand these capabilities. With improved transaction speed and reduced costs, the upgrade is crucial for scaling to meet the rising demand for tokenized assets. Features such as concurrent price streams and a new signaling hub will provide updated data feeds necessary for the accurate representation and trading of tokenized assets, further establishing Band Protocol’s dominance in the sector.
In addition to its technological advancements, Band Protocol’s proven security record instills confidence in its users and investors. With zero compromises or exploits, the protocol has gained a reputation for its security measures. Strategic upgrades and the tokenization of real-world assets have the potential to boost the market cap as tokenized assets gain mainstream acceptance.
However, despite the positive developments, there are bearish risks for BAND prices. A bearish technical setup called the ‘bear pennant’ has formed, indicating a potential continuation of the prior bearish trend. This pattern features a period of consolidation with converging trendlines following a significant downward price movement in the cryptocurrency. Confirmation of this pattern could lead to a price drop of over 38% from current levels, with a projected price target of $0.953. It is important to note that trading volumes play a crucial role in verifying this pattern, with decreased volumes during the consolidation phase confirming its validity.
While the bearish pattern presents potential risks, the recent bullish cues from the Band Protocol project may help BAND prices continue to rally higher, potentially invalidating the bearish pattern.