Klaytn (KLAY) may not be a well-known cryptocurrency. However, it is making a name for itself in the nascent metaverse sector. That is after the native token KLAY more than doubled in value within a single day after a community proposal.
KLAY soared from a bottom price of $0.13 to $0.28 on October 23. A spot check shows that the token has been in a bear market since October 2021. Can the token sustain the surge?
As earlier indicated, Klaytn is crafting a name in the metaverse sector dominated by The SandBox and Decentraland. However, it is a public enterprise blockchain with inroads in non-fungible tokens, gaming, and entertainment. The blockchain is rebuilding to a metaverse scope, enabling users to build, play, and work in virtual environments.
Besides, Klaytn has lined up milestones for the next two years. That includes making the blockchain Ethereum compatible and bringing changes to developer updates and governance. The latest gains in the native token reflect a new update to the network’s tokenomics.
According to an October 23 announcement, Klaytn would slash its block rewards by a third. The block rewards are now 6.4 KLAY, from the previous 9.6 KLAY. The team attributed the change to the global macroeconomic climate. Accordingly, the move will build sustainable growth and attract demand for KLAY. The announcement has ignited interest in the token.
KLAY surges above moving averages as price pumps
Source – TradingView
From the technical lens, KLAY surged above the moving averages amid considerable buyer interest. The cryptocurrency hit near overbought levels as the price doubled.
However, the bullish momentum has since stalled, and KLAY trades at $0.196. A technical outlook shows that the area around $0.25 – $0.30 is a resistance. The price has, therefore, crashed below it.
Should you buy KLAY?
We think buying KLAY now could be a premature decision. There is no confirmed bullish momentum to indicate that the gains are sustainable. Buyers could become attracted if the momentum remains and the token successfully clears $0.30.