BENQI, a decentralized finance (DeFi) platform built on the Avalanche blockchain, has experienced a significant surge in value, rising by over 81% in just one week. On February 28th, the token reached a daily high near $0.029. This impressive rally has led to increased optimism for further gains, as long as the bulls can maintain the key support level.
Following the rally, profit-taking by bears caused a drop of nearly 25% in the BENQI token price on February 28th. However, the bulls managed to repair some of the damage. If the QI price remains above the support near the 0.5 fib level, there is a strong possibility that the token will surpass the 0.618 fib retracement level and challenge the resistance near $0.031. This could result in gains of over 30% from the current levels.
On the other hand, if the sell-off continues, the BENQI price could drop to the 0.382 fib retracement level support near $0.02. This would test the multi-month ascending trendline support. A break below this support could cause panic in the market, potentially forcing the QI price to drop to the support near $0.0165.
The Relative Strength Index (RSI) for QI remains neutral, with a score of 66.83 on the daily charts. This indicates a balanced market sentiment, with the RSI returning from the overbought region it briefly entered on February 27th.
Analyst Jason Marks has suggested that the BENQI token may experience a breakout of 1,300% from its current levels, following a “holding breakout.”
In other news, BENQI has announced a partnership with the Crypto Investor Automation Network (CIAN). This partnership aims to enhance yield opportunities on Benqi by utilizing CIAN’s automation capabilities, particularly in relation to liquid staking. CIAN’s automation tools will streamline processes such as auto-compounding and implement delta-neutral strategies on BENQI.
One notable integration will be CIAN’s automation of recursive AVAX staking. This strategy involves reinvesting staking rewards earned on BENQI back into the AVAX stake, effectively growing the underlying staked asset.
BENQI is a DeFi platform that offers various financial activities, including lending, borrowing, and earning interest on digital assets. It is built on the Avalanche blockchain and consists of three key components: BENQI Markets, BENQI Liquid Staking, and Ignite.
BENQI Markets allows users to lend or borrow cryptocurrencies in a decentralized manner while creating a liquidity pool to support the platform’s ecosystem. The liquid staking feature enables users to stake AVAX and receive a liquid token, veQI, in return, maintaining the liquidity of their staked assets. Ignite simplifies network security and consensus participation, making it easier for users to become validators.
The platform’s native token, QI, has a total supply of 7.2 billion tokens.
