Altcoin
COW’s price surges 220% after Binance listing – What’s next?
If COW drops below $0.30, a bearish trend can likely take over.
- COW’s price rallied by triple digits after Binance listing.
- Token’s overvaluation can likely trigger sell-offs.
CoW Protocol [COW] has captured significant attention following its recent debut on Binance.
The leading crypto exchange’s announcement of the COW/USDT spot trading pair, which launched on 6th November, set the stage for a dramatic price rally.
In a single day, COW’s price skyrocketed 220%, climbing from $0.24 to a peak of $0.77, at press time, as traders rushed to capitalize on the newfound exposure.
At the time of reporting, the price had already retreated to $0.54, representing a notable 16% gain over the past 24 hours, according to
CoinMarketCap.Analyzing COW’s price action: Is a pullback imminent?
While the initial surge in COW’s price reflected significant bullish momentum, its sustainability remained under question.
Thus, COW’s daily chart was examined closely by AMBCrypto, revealing that it was overbought.
This was evidenced by the token trading above the upper Bollinger Band. Furthermore, the expansion of bands signaled heightened volatility.
Source: TradingView
The Chaikin Money Flow (CMF) indicator dipped below the zero line, standing at -0.06 at press time.
This indicated that some investors were cashing out their gains. If this trend continues, COW may drop to find support at $0.35.
Breaching this level could push the price further down to $0.30, a critical support level close to the 20-day moving average.
Failure to hold this base can likely trigger a bearish trend, potentially sending COW down to $0.24, or in a worst-case scenario, $0.16.
COW and CETUS enter Binance
In addition to COW, Binance also listed Cetus Protocol (CETUS), on the same day. This move comes as KuCoin also chose to list COW, reflecting the growing interest in the protocol.
For those unfamiliar, CoW Protocol is a meta-DEX aggregation platform on the Ethereum [ETH] blockchain. It optimizes trade execution by using trade intents and batch auctions to secure the best prices for users in the market.
On the other hand, the Cetus Protocol operates as a decentralized exchange [DEX] with a concentrated liquidity protocol built on the Sui [SUI] and Aptos [APT] blockchains.
The Seed Tag classification
It is worth noting that Binance’s listing of COW and CETUS comes with the application of the Seed Tag. The exchange introduced this designation in July 2023 to identify innovative projects.
The tag signifies that a token may present higher volatility and risks compared to other listings on the platform. It now applies to all tokens that previously were in the Innovation Zone.
Beyond spot trading: More opportunities for COW
Binance’s announcement was not limited to spot trading.
The exchange also revealed that the token would be integrated into multiple services on the same day, including Binance Simple Earn, Buy Crypto, Binance Convert, Binance Margin, and Binance Futures.
Read CoW Protocol [COW] Price Prediction 2024-2025
Additionally, Binance Auto-Invest is set to include COW support on 7th November.
With broader integration into Binance’s trading ecosystem on the horizon, COW’s long-term outlook remains an intriguing prospect for traders and investors.
