Gnosis (GNO) Rallies To $557, What’s Next?

Trading Volume Increased In The Last Days Of The Year

GNO rushed into the top-100 list of biggest cryptocurrencies by market capitalization after a strong two-day rally which pushed the coin from $410 to $557.

Gnosis is a prediction market which is built on Ethereum protocol. It uses a dual token structure which employs GNO and OWL tokens. GNO tokens are used to generate OWL tokens via staking, which is a process that supports the network and confirms transactions, generating passive income in the meantime.

Prediction markets face tough regulation, so attempts to build decentralized markets in the hot crypto market segment attract traders’ attention.

The Technical Picture Is Bullish

GNO gained strong upside momentum after it managed to get out of the recent consolidation. Trading volume increased, indicating that interest in GNO was growing. GNO has already managed to get above resistance levels at $509 and $535, and made an attempt to get to the test of the $560 level. RSI remained in the moderate territory despite the strength of the recent upside move, so there is plenty of room to gain additional momentum.

In case GNO settles above $560, it will head towards the next resistance at $600. A move above this level will open the way to the test of all-time highs near the $700 level.

On the support side, the previous resistance at $535 will serve as the first support level for GNO. A move below this level will push GNO towards the support at $509. In case GNO declines below $509, it will head towards the support at $485.

Taking a look at H1 chart, we can see that GNO has already started to pull back, which is normal after a strong rally. RSI on the H1 chart has recently returned to the moderate territory, so GNO will have a good chance to gain upside momentum after this pullback is completed.