What’s going on with the Nervos Network (CKB) price?

Nervos Network’s (CKB) price has gone vertical in the past few days. It has staged a strong parabolic move, rising in the past four straight days, moving from a low of $0.0047 to a high of $0.014, meaning that it has risen by over 200% in this period. This surge has brought its total market cap to over $632 million.

Why is the CKB token soaring?

Nervos Network token price has gone parabolic this week as it joined other digital coins in a strong bull run. Bitcoin has, itself, has jumped to over $52,000, giving it a market cap of more than $1 trillion. It joins a special club of the seven other global companies that have a $1 trillion valuation.

The network jumped as the developers embraced the Bitcoin ecosystem. They launched a protocol that goes further than other Bitcoin layer 2 networks like Stacks. The goal is to create a platform that synergizes with Bitcoin. 

One of the #OGs, $CKB @NervosNetwork, rocketed by 90% in 3 days! 📈

Curious what sparked its revival? Unlike typical BTC Layer 2, Nervos introduced a protocol that synergizes with #Bitcoin!

Aiming to create the first-ever 'POW+UTXO' BTC L2! Experience the innovation of #Nervos… pic.twitter.com/jjvmUX432d

— Bitget Wallet 🩵 (@BitgetWallet) February 14, 2024

This is a notable step because there is a strong demand for networks that are seeking to accelerate the use of Bitcoin’s technology. For example, Stacks has seen its market cap soar to over $4 billion in the past few months.

Similarly, Internet Computer, which introduced a Bitcoin twin known as ckBTC, has grown to become the 16th biggest cryptocurrency in the world with a market cap of over $6 billion. 

Further, Bitcoin Ordinals have become the most successful NFT collection in the past few months. Total sales have remained at an elevated level even as concerns about the industry remain.

The Nervos Network’s idea for RGB++ is that it uses Bitcoin Layer 2 as an RGB client. It incorporates single-use seals and client-side validation techniques to manage state alterations and transaction verification. In this line, it maps Bitcoin UTXO onto Nervos CKB cells in a process that ensures the correctness of the state computation. This process also helps to ensure the validity of ownership changes.

Nervos Network price forecast

Turning to the daily chart, we see that the CKB price has surged hard this week, making it the best-performing cryptocurrency in the market. Along the way, the token has surged above the key resistance level at $0.0047, which was the previous highest point this year. It has also remained above the 50-day moving average.

Further, the token has gotten highly overbought, as the Relative Strength Index (RSI) is nearing the extreme overbought point at 100. The Stochastic Oscillator has also jumped to almost 100. Therefore, I suspect that the Nervos token will pull back and retest the psychological level at $0.010. If this happens, the token will then resume its bullish rally.

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