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Band Protocol (BAND) has been garnering significant attention over the past few weeks due to its intense rally that sent it from the lower-$4.00 region in early-August to highs of nearly $18.00 that were set earlier this week.

The cryptocurrency is now facing an influx of selling pressure as its highly profitable investors begin taking profits.

A dive into BAND’s on-chain data, however, suggests that the cryptocurrency is now trading just above a major support level that may bolster its near-term outlook.

That being said, it still faces some heavy resistance around $14.00 that may be difficult for buyers to surmount.

Band Protocol’s token has been one of the best performing within the entire crypto market so far this month.

After stabilizing around $4.00 in early-August, the token’s price began seeing a parabolic ascent that ultimately led it to highs of $18.00 just a couple of days ago.

A few key factors backed this strong price movement, including notable integration announcements as well as a coveted Coinbase Pro listing.

Adding fuel to the fire was Huobi’s decision also to list the token, which is what propelled it to its $18.00 highs.

While mapping out the events that helped drive this uptrend, analytics platform Messari noted that Band Protocol took a “page straight out of the LINK handbook.”

All these factors, however, were not enough to provide it with sustainable momentum, as it subsequently erased 30% of these gains.

“BAND has recently taken a page straight out of the LINK handbook with a slew of partnership and integration announcements, including a Coinbase Pro listing.”

Unless the Band Protocol’s oracle network sees further integrations in the near-term, there’s a high likelihood that the cryptocurrency’s uptrend will stagnate.

Data from blockchain data firm IntoTheBlock shows that the Band Protocol token may not decline for too much longer before finding some strong support.

The firm’s “In/Out of the Money Around Price” indicator shows that the price region between $12.56 and $12.95 is strong support.

As seen in the above image, BAND doesn’t face too much resistance until it reaches the price region between $14.16 and $14.48.

One factor that may also boost its price action is the mounting hype surrounding oracles. This has led some investors to use Chainlink’s multi-billion-dollar market cap as an anchor for BAND’s growth potential.

The post Here’s what on-chain data is saying about Band Protocol’s 30% decline appeared first on CryptoSlate.

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