Backpack [BP] rallied more than 43% in the past 24 hours, bringing its weekly gains above 121%. During this period, the price of BP went on to make a new peak value of about $1.3994.
Even in trends, BP led all other coins in social sentiment. Other factors that contributed to this sharp uptick in price were volume and total assets deployed.
Analyzing resurgence in RWA-themed coins
First, there was a market-wide resurgence in the real-world asset (RWA) sector, with BP leading all in daily gains, according to CoinGecko. Other RWA-themed coins that came close were Ondo Finance [ONDO] and Quant [QNT], of which both grew over 25%.
The uptrend was amplified by a spike in perpetual liquidations of shorts, which was 73 times bigger than that of longs.
Further analysis of the protocol, which is built on Solana [SOL], unmasked more metrics.
For instance, Total Assets deployed on BP reached a new high of $604.75 million. Over the past week, the average daily asset transfer count reached 1 million.
As a result, asset holders surged by 204%, surpassing the 242K mark, as per Token Terminal.
Additionally, the monthly token trading volume surged by 175%, to about $157 million. But from a daily perspective, the volume had quadrupled from $7 million to over $29 million.
However, its monthly DEX trading volume declined by 12%, even though it remained high at $1.10 billion.
What’s next for BP after printing a new high?
On the charts, BP was respecting a rising trendline support over the past 8 days. In fact, the altcoin was trading above $1, but bulls were potentially losing grip.
The Bull Bear Power (BBP) reinforced this declining buyer momentum. Even the Chaikin Money Flow (CMF) indicated capital was leaving the coin. The CMF indicator plunged from 0.40 to negative 0.08.
This data explains why BP appears to be entering a correction phase. If the altcoin retraces to the slanting support, it would align with the 0.786-0.90 Fibonacci Retracement level.
Still, traders should be wary of BP equalling its peak value at $1.3994 before an actual retracement. But that is not certain, as there were aggressive sellers above $1.30. The trend was clearly evident as candles were closing at or below this level with a lot of wicks above.
These multiple wicks above $1.30 indicated selling pressure in this zone.
Final Summary
- Backpack rallied over 43% in the past 24 hours and hit a new high amid a resurgence in the broader RWA sector.
- BP was respecting a rising trendline support, but capital was flowing out after the new peak.
