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Axelar (AXL) price went vertical on Friday, becoming the best-performing cryptocurrency in the industry. The token surged by over 60%, pushing it to a record high and giving it a market cap of more than $1.46 billion. It has soared by over 700% from its lowest point in December.
Why did AXL price surge?
Axelar is a leading infrastructure provider that works behind the scenes of most applications in the industry. Its goal is to connect over 50 blockchains across multiple consensus networks like Cosmos and EVM.
Axelar’s technology enables developers to onboard users with ease. It is widely used by Web3 networks in industries like Decentralised Finance (DeFi), Non-Fungible Tokens (NFT), stablecoins, and wallets.
Axelar has a huge ecosystem that is made up of some of the biggest players in the industry like dYdX, PancakeSwap, Lido, and Pangolin. It is also used by Trust Wallet, Squid, and Sushi.
It is unclear why the Axelar price went parabolic since the developers did not make any announcement on Friday. A likely reason is that there could be an upcoming partnership or announcement coming soon.
The other likely reason is that the coin is being pumped by day traders in key platforms like Reddit and StockTwits. It was one of the top trending cryptocurrency in these platforms on Friday.
Recently, we have seen some of the most mentioned cryptocurrencies and stocks go parabolic. For example, Bonk, the top-mentioned token on Thursday, was one of the top-performing coins in the industry.
The other reason is that the Fear of Missing Out (FOMO) has returned in the market recently as Bitcoin has surged above $60,000. As such, we will often see some altcoins go parabolic for no reason as the fear and greed index rises.
Axelar price forecast
AXL chart by TradingView
Turning to the daily chart, we see that the AXL token price has been in a strong upward trend after bottoming at $0.3265 last year. The rally accelerated on Friday as it moved near to the resistance point at $3.
As it rose, Axelar token price has moved above all moving averages, meaning that bulls are in control. However, the parabolic move means that the coin has become highly overbought as the Relative Strength Index (RSI) soared to over 87. The Relative Vigor Index (RVI) is nearing 0.50.
Therefore, three primary scenarios are going forward. The first is where the token continues rising as buyers target the resistance at $3. Also, it could pull back and retest the support at $1.50. Alternatively, the token could form a bullish flag or pennant pattern since it has already formed the pole section.
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