Swirling in the fiercely competitive market of decentralized finance, the utility token that propels the Rocket Pool Ethereum liquid staking protocol – RPL, has been on a downhill slope. The crucial element used alongside ETH for staking and governance inside the Rocket Pool protocol had a nosedive of approximately 7.5% within a day, hence earning the meticulous accolade of being the worst-performing cryptocurrency among the top 100 in terms of market capitalization.
Teetering on the brink of a price collapse, the value of RPL plummeted south of the pivotal resistance level at $31.30, its lowest since March, prompting a plethora of bearish predictions. If the RPL manages to further breach the key psychological support at $30, an ominously gloomy future awaits.
Delving into the technical perspective of RPL unveils a disquieting spectacle. Having broken down not only a key support but also a potential trounce below $30, the cryptocurrency infamously traded southwards of its major moving averages, with the 21-Day Moving Average appearing as an formidable barrier. Enveloping the worrying image of RPL was the triggering of a formidable sell signal, induced by falling of the 50-Day Moving Average below the 200-Day Moving Average – a phenomenon ominously termed as a “death cross”.
Beyond a shallow technical sphere, RPL’s struggle finds roots in fundamental reasons as well. Despite the share of Rocket Pool in the ETH staked market swelling from a mere 5% to nearly 8% since the dawn of 2023, a discernible slowdown is palpable in the market share growth rate. Alarmingly, experts speculate a possible reversal due to Rocket Pool’s comparatively lower yield for ETH stakers (approx. 3.3%, according to DeFi Llama) stacked against Lido’s 3.9% and Coinbase Wrapped Staked Ether’s 4.4%.
Another angle that adds to the scepticism about RPL’s future is its value in comparison to Lido’s LDO token. While Rocket Pool sports a 0.39 market cap/TVL ratio, Lido stands robustly at 0.12, proving RPL’s comparative overvaluation.
With a rather windy weather ahead for Rocket Pool, investors might consider laying out filters to diversify their portfolio. While stable options like BTC and ETH remain in the picture, for those possessing high-risk appetite and a potential thrust for short-term profits, meme coins could perform the trick. On that note, $KENNY, a newborn meme coin sporting a South Park theme is grabbing attention. Engendering a $350,000 worth sales just few hours into presale, the Burn Kenny Coin could be a potential rave for high-risk investors seeking hefty returns.
Source: Cryptonews
