It can be said that Gas (GAS) is the first long-standing Altcoin to reach an all-time high (ATH). With a surge of over 1,200% since the September low, GAS has attracted significant liquidity, without a specific convincing reason.
Here are some summaries and observations regarding Gas (GAS), a token used for transaction fees on the Neo Blockchain, along with some predictions.
Gas (GAS) has experienced a significant increase in price but also a substantial decrease. Statistics recorded by CoinmarketCap show impressive figures. The 24-hour trading volume today (not yet finished) has exceeded $2.1 billion, ranking 6th in the global market. The Volume/Market cap ratio (24h) is over 1,600%, meaning the trading volume is 16 times the circulating supply.
Today, GAS recorded a significant red candle with a 60% decrease from its new ATH of $30. GAS experienced an explosive rise from $2 in October, but the decline has also been sharp.
The data from the Volume Profile indicates two short-term support levels for GAS, which are $12 and $5. The price can fluctuate rapidly, especially when GAS follows a parabolic “mini” pattern. Those who accumulated GAS earlier may take advantage of the large volume to secure profits before GAS returns to normal.
Where does the price increase of GAS come from? Out of over $2.1 billion in trading volume today, a whopping 70% comes from the Upbit exchange. 18% of GAS volume comes from Binance, while the rest is distributed among more than a dozen other exchanges. Therefore, it can be affirmed that the GAS price increase is driven by the Upbit exchange. Coingecko reveals that GAS’s volume alone accounts for 21% of Upbit’s total trading volume.
Recently, many Altcoins have been boosted by Upbit. For instance, LOOM had a significant surge last month, increasing by 1,100% with a daily trading volume of over $1 billion on Upbit. A scenario of such dramatic price increases has once again occurred with GAS.
Upbit is a South Korean exchange, and the trading pair that drove the price increase is not USDT but KRW. Many assessments suggest that such price increases are artificially driven by large holders rather than genuine supply and demand.
The latest activities of NEO do not seem to have much impact on investor sentiment to boost the price. However, in November, NEO has also doubled in value, reaching a high of $15 in the overall market excitement.
What can we learn from GAS’s price behavior in the past? Observing the price behavior of GAS, a similar increase occurred at the beginning of the 2021 uptrend, and GAS immediately dropped by 70% in the following week.
Even traders who trade GAS are looking for quick in-and-out opportunities rather than intending to hold. Therefore, GAS’s price could drop by 70% to 90% as per the historical price behavior pattern.
At the end of last month, BitMex listed perpetual contract GASUSDT with a maximum leverage of 10x. On November 8th, Demex exchange also followed BitMex’s footsteps. With such large price pumps and dumps, those holding significant amounts of these contracts will either benefit or incur losses.