The Kadena price is not fizzling. The KDA token price has bounced back and is currently trading at $24.45, which is a few points below its all-time high of $26.57. It has jumped by more than 24,600% from its lowest level in July. This week alone, Kadena has risen by more than 100%.
Why is Kadena surging?
For starters, Kadena is a blockchain project that was launched by two engineers who used to work at JP Morgan. The two were even involved in the launch of the JPM Coin, which is an internal blockchain platform used by the bank.
Kadena is aiming to disrupt the fast-growing blockchain infrastructure industry. In other words, it is a supercharged Ethereum-killer that helps developers build superfast and highly-scalable platforms.
For example, while Ethereum has a transaction per second of less than 20, Kadena has about 450,000. This makes it blazingly faster than other platforms. To put this into perspective, a platform like Visa transacts about 1,700 transactions per second. Therefore, when implemented well, Kadena could be a game-changer.
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There are several reasons why the Kadena price is surging. The most obvious one is fear of missing out (FOMO). In most cases, retail and institutional traders tend to rush to cryptocurrencies that are doing well. This is a phenomenon that also happens in other asset classes like stocks and commodities.
Indeed, the number of online searches about Kadena have been rising. Also, Kadena has managed to grow its Twitter followers to more than 78,000 from about 68,000 last week.
Second, the developers recently launched a new Kadena chainweb mining client that enables miners to mine to their own nodes. By so doing, these miners are able to avoid moving through a pool and paying the so-called pool fees. This is an important aspect since Kadena still uses proof-of-work technology.
.@Kadena_io adds another layer of decentralization to traditional #PoW #blockchain with the release of Chainweb-Mining-Client!
If you’re a Kadena miner & would like to try it out, you can find the initial release here: https://t.co/T9fOkjiyQI https://t.co/eNmR5MXRVW— Kadena (@kadena_io) November 10, 2021
Third, the Kadena price is rising because of the rising demand for its platform among non-fungible tokens creators. In addition, the platform is being used by developers who are building DeFi and metaverse platforms.
Kadena price prediction
The daily chart shows that the Kadena price was recently in a tight range. This situation changed recently when the coin started having a parabolic rally. Since then, it has jumped by more than 1,000% and become one of the best performing cryptocurrencies.
As a result, the coin has moved significantly above the 25-day and 50-day moving averages (MA). This makes it relatively overvalued. Its oscillators like MACD and Stochastic have also surged.
Therefore, while the future of Kadena is bright, the price will likely have a pullback. According to the Wyckoff model, financial assets always have a pullback after going through a parabolic rally.
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