EtherFi has just launched its airdrop claim site for users that are eligible so that they can claim their allocations of the ETHFI token, the token of the EtherFi platform.
Sadly, after the airdrop site went live, the price of ETHFI significantly dropped from more than $4 to around $3 in less than a day prompting investors and airdrop receivers to liquidate and realize their holdings.
But even though the price dropped, it has now come back up again in the positive condition of the whole crypto market, which creates a question, is the ETHFI token worth it to buy?
Analyzing ETHFI’s Price
Looking at the technical chart of the ETHFI Price, it seems that the movement is currently neutral as the market is currently facing a consolidation phase after the huge turmoil it experienced a couple of days back.
ETHFI is currently consolidating around $3.9 where it is still trying to go back up again to its highest level above the $4 mark.
If we take a look at the transaction volume of the chart above, it can be seen that currently it is balanced between buying volume and selling volume with currently buying volume dominating today after the last two days being dominated by selling volume.
The Relative Strength Index Indicator or RSI also shows a neutral movement as the token is consolidating, giving hints that it is still waiting for the overall market sentiment before confidently going back up again.
However, if the token decides to go down, the current support level stands strong around the $3.5 to $3 mark which could be a good buying zone before the price goes upwards breaking the $4 resistance.
Looking at the overall chart movement, there is no telling yet on whether the price will go up or down, but looking at the correction pattern break and the current consolidation, the price will likely go up.
LSD Narratives Might Push It Upwards
The upwards narrative is also supported by the fact that Liquid Staking Derivatives or LSDs are still a huge trend that receive warm positive sentiment from the market.
Considering that EtherFi falls under the category of LSDs, it is possible that the token will go upwards, breaking the current price resistance of $4.
Looking at the data from Coingecko, it is seen that in the last seven days, the Liquid Restaking Governance Token category is sitting at the number one spot with the highest price gain.
That category is a related category to the LSD narrative which means that the narrative of LSDs will continue to hold its ground in the crypto market.
Looking at the seventh spot, it is seen that the whole EtherFi ecosystem is still rising, with a price gain of around 9% cumulatively, meaning that the market is still reacting to the hype positively with no signs of losing interest.
However, even though it is still considered positive, the sentiment around EtherFi might change after the airdrop claim process is done as the total value locked or TVL on the platform is also decreasing.
This can be utilized by looking at the support level of the ETHFI token from the chart above so that when the price goes down, you can utilize it to buy, of course with a proper risk management plan and a special allocation of funds to endure the potential volatility ahead.
If you are interested in buying ETHFI, you can do it on the Bitrue platform, so you can utilize its price movement without having to incur the hassle of Web3 wallets, if you are not familiar with it yet.
Official Website
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer:
The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.