After the close on December 10, we will take a look at the BANK token of the Lorenzo Protocol.
According to the latest market data, its price has fluctuated slightly in the past 24 hours and is currently consolidating around the key level of $0.045.
This price level is worth our in-depth consideration.
From the trading data, there are several key points. First is the trading volume. The recent 24-hour trading volume is about $4 million, which shows a relatively active turnover rate compared to its circulating market value.
However, compared to the nearly $15 million trading volume during the sharp price fluctuations in mid-November, the current volume has clearly contracted.
I believe this volume reduction consolidation is an important market signal: it indicates that after experiencing significant fluctuations, both bulls and bears have entered a brief equilibrium and wait-and-see phase in this area.
Next is the price position. The 0.045 dollar threshold is roughly in the lower middle zone between the historical high (about 0.23 dollars) and the historical low (about 0.03 dollars).
Above is a heavy area of trapped chips, while below, a relatively solid stage bottom has formed above 0.03 dollars.
Thus, the current price level can go up or down, highly dependent on subsequent momentum.
So, where does the momentum come from?
I believe traders should not only focus on the candlestick chart but also pay attention to the key data of the project's fundamentals.
The most hardcore indicator of Lorenzo Protocol is its total locked value (TVL), which has approached 590 million dollars.
This number is the basis for the protocol's real earnings and attracting users. In comparison, its fully diluted valuation (FDV) is currently around 19.4 million dollars.
This leads to an important trading perspective: the ratio between the real value generated by the protocol (TVL) and its market valuation (FDV). A protocol with nearly 600 million dollars in real assets is valued at less than 20 million dollars; this fundamental gap itself constitutes a potential trading narrative.
Therefore, my view is that the current consolidation of BANK is digesting the previous fluctuations and waiting for the next driving factor.
This factor could be the overall warming of the Bitcoin ecosystem, driving demand for its stBTC product; or it could be progress related to its RWA (real-world assets) new products.
For traders, around 0.045 dollars, two points need to be focused on:
First, whether the trading volume can gently expand again to form support;
Secondly, whether the sentiment across the entire Bitcoin Layer 2 sector is warming up.
In the absence of new catalysts, the price may continue to oscillate within the current range, trading time for space.
#LorenzoProtocol @Lorenzo Protocol
