The CoW [COW] protocol has attracted a lot of attention after its launch on Binance. The leading cryptocurrency exchange announced the COW/USDT trading pair, which officially opened for sale on November 6, setting the stage for an impressive price surge.
In just one day, the price of COW surged 220%, from $0.24 to a high of $0.77, as traders jumped at the opportunity to capitalize on the new addition. At press time, the price has corrected to $0.54, representing a 16% increase in the past 24 hours, according to CoinMarketCap.
COW Price Movement Analysis
While COW’s initial surge showed a strong bullish trend, questions remain about its sustainability. COW’s daily chart is closely watched, showing overbought conditions. This is reflected in the token trading above the upper band of the Bollinger Band indicator. Additionally, the expansion of the bands suggests increased volatility.
The Chaikin Money Flow (CMF) indicator has dipped below the zero line, at -0.06 at press time, suggesting some profit-taking by some traders. If this trend continues, COW could fall to find support at $0.35. A break below this level could see the price continue to fall to $0.30, a key support level near the 20-day moving average. Failure to hold this support level could trigger a bearish trend, potentially taking COW to $0.24, or in a worst-case scenario, $0.16.
COW and CETUS Launch on Binance
In addition to COW, Binance also listed Cetus Protocol (CETUS) on the same day. The move comes as KuCoin also decided to list COW, reflecting growing interest in the protocol.
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CoW Protocol is a DEX (decentralized exchange) aggregator platform on the Ethereum [ETH] blockchain. It optimizes trade execution using transaction intent and batch auctions, ensuring the best prices for users in the market.
In contrast, Cetus Protocol operates as a decentralized exchange [DEX] with a centralized liquidity protocol, built on the Sui [SUI] and Aptos [APT] blockchains.
