- The GNS coin price has given a breakout of the double-bottom pattern.
- Moving averages are indicating ‘strong buy’ signals.
The Gains Network (GNS) is developing gTrade, a liquidity-efficient decentralized leverage trading platform. Its synthetic designed architecture makes gTrade more capital-efficient than any other platform. It has become the most adopted decentralized leverage trading platform. The network is governed by a DAO (Decentralized Autonomous Organization) and utilizes a $GNS token. Its objective is to develop DeFi (Decentralized Finance) products that generate revenue, contributing to the $GNS staking pool.
Previous Price Movements of the GNS Coin
In February 2023, the GNS coin price moved downward from the $10.70 resistance level with a decline of 50%. Subsequently, it broke below the $5.99 major support level which gave sellers an indication of the upcoming declines.
The GNS coin price started its second bearish rally from the $9.92 resistance level which broke below the important $5.22 support level. As a result, the price fell more than 60% until it reached the $3.60 support level. From that level, the price moved toward the $5.22 resistance level (after the breakout) to retest it. Subsequently, it formed a double-top at the retest level and then fell more than 45% to the $2.87 support level.
The GNS coin price has given a monthly return of 34.05% despite being negative with the six-month return. Recently, it formed a double bottom at the $2.87 support level. At present, the GNS coin price is at $4.24.
Technical Analysis of the GNS Coin
The GNS coin price is moving between the 50-day and the 200-day EMAs, reflecting a short bull run. However, the 200-day EMA at $4.57 seems like it is failing to maintain resistance at that level. The 50-day EMA is at $3.73.
The GNS coin price recently formed a double-bottom pattern, finding support at the $2.87 level and experiencing a breakout at $3.79. Currently, it is trading within the range of the $4.76 immediate resistance and the $3.79 breakout retest level. The price has displayed bullish candle formations in recent sessions, indicating ongoing buyer interest and a reluctance to settle down. This suggests a potential positive sentiment in the market.
The relative strength index (RSI) is showing some signs of an internal bearish divergence at the current session. This shows that sellers have more control over price momentum than buyers. At present, the RSI is at 62.41, below the signal line.
Conclusion
The GNS coin price is moving in a downtrend, and it recently gave a breakout from the double-bottom pattern. It is moving above the 50-day EMA while facing resistance from the 200-day EMA, reflecting a short-term pullback. According to the technicals, the $5.45 resistance level can become a pivotal point for a potential reversal. However, for the continuation of the downtrend, the GNS token price should close below the 50-day EMA.
Technical Analysis
- Resistance levels: $4.76 and $5.45
- Support levels: $3.60 and $2.87
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto assets comes with the risk of financial loss.