Numeraire (NMR), the native token of Numerai – a blockchain-based hedge fund, rose exponentially over the last 24 hours.
The NMRUSD exchange rate established a year-to-date high at $20.28 after rallying by close to 190 percent on Wednesday. The pair’s massive upside move came days after the announcement of Coinbase Pro–a US-regulated crypto firm– to list NMR-enabled pairs on its proprietary trading platform.
On Monday, the San Francisco-based company said that it would enable NMR deposits. It added that once they secure a sufficient NMR supply in their reserves, their platform would list NMR-USD, NMR-BTC, NMR-EUR, and NMR-GBP pairs in four successive phases: transfer-only, post-only, limit-only, and full trading.
A Coinbase listing expects to make NMR as liquid as the top cryptocurrency tokens like Bitcoin and Ethereum. That raises the coin’s appeal before potential traders and investors. It explains why NMRUSD surged massively during the trading session Wednesday.
Numeraire chart by TradingView.com shows NMRUSD in a pumping move.
But a 190 percent rally appeared excessive at best. While Coinbase Pro may have played a key role in sending the NMR price upward, but the remainder of the bull run came out of pure speculation. That left the token under the risks of a dump.
At least one indicator pointed to the said imminent threat. The Relative Strength Indicator (RSI) jumped into its overbought territory following the Wednesday price rally. In recent history, RSI’s moves above 70 during a wild upside trend caused moderate price corrections, as shown in the daily chart above.
Meanwhile, a weekly outlook offered a better insight over the level from where NMR could begin its corrective trend. So it appears, the cryptocurrency is eyeing a retest of $62.61, a level it last touched in January 2018. Traders might use the top as a mean of profit-taking.
Numeraire chart by TradingView.com shows NMRUSD testing a January 2018 resistance level
At the same time, a correction does not necessarily mean the beginning of a downtrend. The NMRUSD exchange rate could fall back only to retest the 20-weekly moving average wave as support. It is only when the pair breaks below the blue level, a bearish bias can be confirmed.
Numeraire’s latest gains also come as a part of a running uptrend in the cryptocurrency market. NMR price is currently trading 726 percent higher on a YTD timeframe. Meanwhile, its year-on-year gains are approaching a whopping 1,000 percent.
But Numeraire remains one of the few blockchain projects heading higher on concrete catalysts. NMR serves as a backbone of a wide data prediction network that rewards data scientists for accurately predicting the outcome of hedge fund performances.
As a startup, Numeraire has emerged as a credible platform. But nevertheless, it stands overvalued for its own bad.