Orchid price forecast as OXT/USD rallies 30%, volume up 500%

• The price of crypto-powered virtual private network Orchid spiked 30% on Tuesday.

• Trading volume for the OXT/USD also soared more than 500%.

• Orchid now has a fully diluted market cap of nearly $630 million.

On Tuesday, the price of the crypto-powered virtual private network, Orchid (OXT/USD) spiked more than 30% Tuesday, with trading activity pushing the 24-hour trading volume up by 500%. OXT is an ERC-20 standard token on Ethereum.

Orchid was launched in December 2019 and describes itself as the world’s first incentivized, peer-to-peer privacy network. Orchid aims to decentralise the internet service providers’ market by allowing cryptocurrency users to purchase bandwidth from any participating provider.

Is OXT/USD a buy or sell?

From an investment perspective, Orchid presents a unique opportunity for investors looking to capitalise on the rapid growth of the VPN market. It is one of the few cryptocurrency projects with a defined source of intrinsic value.

The OXT/USD appears to be trading within an ascending channel in the intraday chart. On Tuesday, it spiked to set a new 6-month high of $0.7476 before pulling back towards $0.6136.

However, Orchid still trades in the overbought conditions of the 14-day RSI, creating an opportunity for a pullback. Therefore investors could target downward profits at about $0.5520, or lower at $0.4715.

On the other hand, if the OXT/USD bounces back in a bid to reclaim Tuesday highs, buyers could target profits at about $6763, or higher at $0.7476.

In summary, Orchid’s sharp spike on Tuesday creates a perfect opportunity for profit-takers to swoop in. Therefore, it looks more promising for those targeting short-term shorting opportunities.