The Perpetual Protocol price is defying gravity even as other cryptocurrencies crash. The PERP token is trading at $0.7800, which is about 50% above the lowest level this year. The token has a market cap has jumped to more than $55 million, making it the 356th biggest coin in the world.
What is Perpetual Protocol?
Perpetual Protocol is a leading decentralized exchange (DEX) that enables people to buy and sell cryptocurrencies. It mostly focuses on perpetual futures, which are similar to other futures products but those that don’t have an expiry date. Some of its top competitors are platforms like dYdX, FTX, and BitMex.
The platform has more than $30 million in total value locked (TVL), which is lower than its all-time high of over $51 million. Unlike most exchanges, Perpetual Protocol and other derivative products have seen relatively higher volume during this crash since they allow people to make money as prices retreat.
Perpetual Protocol has made some important strides in the past few months. For example, the developers launched V2 of its platform on Optimism, one of the fastest-growing blockchain projects. This launch had some important features such as the integration with Uniswap v3, which allowed liquidity providers to employ a powerful liquidity provision strategy.
Another useful feature offered by Perpetual Protocol is Perp-Curie Arbitrageur. This opn-source product enables people to execute an arbitrage trade between Perpetual Protocol v2 and FTX.
It is unclear why the Perpertual Protocol price is soaring. A likely reason is that investors are now buying the dip as they anticipate strong performance of the platform as volatility continues. Since there is no major news, this rally can be part of a pump and dump scheme among traders.
PERP price prediction
The four-hour chart shows that the PERP price declined to the YTD low of $0.4975 during the weekend. It has managed to bounce back and move slightly above the 25-day and 50-day moving averages. The coin remains below the important resistance level at $1, where it struggled moving below in May this year. At the same time, the MACD indicator has moved close to the neutral point.
Therefore, in my view, I suspect that Perpetual Protocol will resume the bearish trend and retest the important support level at $0.50