COTI Price Surge: Can the New Privacy Feature Sustain Its Momentum?

Over the weekend, COTI witnessed an impressive surge, recording a 115% increase in value. The price soared past the $0.243 mark, pushing the market cap to $367 million. Trading volumes neared the $400 million threshold, signalling heightened investor interest and activity in the asset.

However, COTI was down 4.83% from its intra-day high at press time, exchanging hands at $0.2119. Concurrently, the market cap and 24-hour trading volume dipped by 4.89% and 25.19% to $323 million and $314 million, respectively.

Innovative Feature Fuels Price Rally

The COTI network claims to be committed to providing fintech solutions and recently introduced a feature that reportedly enhances user privacy. COTI claimed that with the introduction of Garbled Circuits, a new benchmark is set in blockchain encryption.

The “Garbled Circuits” feature was announced on February 20 and analysts claimed that the feature was a factor in the asset’s price dynamics. The feature is supposed to address the limitations of previous blockchain encryption methods.

As a result, the market has responded positively to the introduction of Garbled Circuits, as evidenced by the substantial increase in COTI’s price. However, despite the recent rally, the asset encountered resistance at the $0.23222 level, leading to consolidation.

Market participants remain optimistic yet cautious, given the asset’s volatility. Concurrently, traders advocate focusing on longer timeframes to effectively navigate the current market conditions with projections of a potential rally to $1.

COTI/USD Technical Analysis

On the COTI/USD 4-hour price chart, the Money Flow Index (MFI) rating of 76.57 indicates that the present buying pressure is relatively strong. This might suggest an overbought position in the market, resulting in a price correction.

This pattern implies that the current negative trend may be caused by investors taking profits and selling off their positions, leading the price to fall. A bullish rally would require a drop in selling pressure and increased purchasing demand to drive the price upward.

COTI/USD 4-hour price chart (source: TradingView)

The Relative Strength Index (RSI) rating of 76.27, which has moved below its signal line, supports the possibility of a market price correction. This pattern also implies that traders should be cautious and consider taking gains or using risk management methods to preserve their investments.