COTI Price Needs to Rise 40% to Return to Top 200 After Launching Developers Network
Can COTI Return to Top 200 Cryptocurrencies? | Credit: Derek Fenech
Key Takeaways
- The COTI team announced the release of the Developers Network on May 21.
- The price of COTI has fallen since its yearly high of $0.278 on February 26.
- Can COTI begin an upward movement and return to the top 200 cryptos?
On May 21, the COTI Foundation announced that COTI V2 Developer Network is going live and will include numerous incentives for builders. The COTI price has not performed well since the start of 2023, falling outside of the top 200 biggest cryptocurrencies ranked by their market capitalization.
Despite an ongoing correction since March, COTI’s bullish structure remains intact. Can the launch of the developers network catalyze a much-needed rally for the COTI price, or will its middling performance continue?
COTI Announces Developers Network
COTI V2 is an Ethereum Virtual Machine Layer-2 platform that focuses on privacy. The developers network will mark the first time that builders will be able to develop on COTI’s Layer-2 solution. Some of its privacy features include confidential transactions, decentralized finance and sensitive on-chain data management. Its flagship offering is the encryption technology called Garbled Circuits.
The COTI team also announced a builders program that incentivizes developers to participate in the new network and drive innovation in blockchain privacy. This will be done through grants, support and training.
The grants will have a target range of $1,000 to over $100,000, based on how far in development the projects are. 400 million COTI tokens have been set aside for this program.
The COTI price did not reacted on May 21 despite these positive announcements.
COTI Bounces at Long-Term Support
The weekly time frame chart shows that COTI has fallen since its yearly high of $0.28 in February. Despite the decline, the price bounce in April, validating a horizontal and diagonal support. more specifically, COTI validated the $0.12 horizontal support area and the resistance trend line of a previous ascending parallel channel (green icons). Since these levels previously provided resistance, the bounce resembles a retest after a breakout.
During this time, the weekly RSI also bounced at 5o (green circle), a sign of a positive trend. While the MACD has not made a bullish cross yet, it is trending upward and could do so soon.
COTI has a market capitalization of 230 million. The 200th biggest cryptocurrency, PEOPLE, has a market capitalization of $320 million. With a circulating supply of 1.57 billion tokens, a price of $0.204 will take COTI back to the top 200.
The 0.618 Fibonacci retracement resistance level is at $0.206, 40% above the current price. Reaching it could catapult COTI back into the top 200.
COTI Price Prediction: Breakout or Rejection?
The daily time frame chart gives mixed readings. On the bullish side, the price created several higher lows and broke out from a descending resistance trend line on May 19 (dashed). Additionally, the MACD and RSI are trending upward. The MACD is positive, and the RSI is above 50.
On the bearish side, the price still trades below the $0.146 resistance area, which previously provided support. Also, the increase is contained inside an ascending parallel channel. These channels usually contain corrective movements. So, until COTI breaks out from the channel, it cannot confirm that the bounce from the lows is impulsive.
If it does, COTI will likely increase to at least the 0.618 Fibonacci retracement at $0.206. Depending on how the other cryptocurrencies near the top 200 react, this could take COTI back to the top 200.
On the other hand, a rejection from the $0.146 resistance can trigger a downward movement toward the channel’s support trend line at $0.120. This could also validate the previous descending resistance trend line.
COTI Trend Undetermined Despite Developer Network Release
The release of COTI V2 developer network is undoubtedly a positive development. However, the COTI price has not reacted to it yet. Moreover, the COTI price chart shows an undetermined outlook. Whether COTI breaks out from $0.146 or gets rejected will play a pivotal role in determining the future trend’s direction.
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