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GEODNET is the governance token for the Global Earth Observation Decentralized Network, which connects Space Weather mining stations. GEODNET’s [$GEOD] returns peaked at 39% in just 24 hours recently. However, the altcoin has since retraced by around 15%.
The GEODNET team has already released almost half of its total supply of 962.94 million $GEOD tokens. Hence, the question: Why is $GEOD rallying so hard now?
Why is GEODNET pumping?
Following its listing on Upbit last week, the altcoin has been among top gainers on different exchanges. On KuCoin Web3 Wallet, for instance.
This high trading activity on CEXs and DEXs resulted in a spike in daily volume. According to CoinMarketCap, the daily trading volume surged by more than 2,263%, surpassing $17 million.
Additionally, there has been an uptick in the burn rate of the circulating supply. According to Blockworks, 240K $GEOD worth over $44K were permanently burned in the last 24 hours alone, taking the two-day total to 715K tokens.
In terms of daily burn rate, the metric surged from 96.3% on 7th August to 180.3%. This was almost double in four days.
On top of that, the number of monthly transactions seemed to be rising. As per IoTeXScan, transactions jumped from 17,995 to 52,996. This was equivalent to a 3x hike in just a single day.
Most of the transactions were happening on the Solana [SOL] chain, while a fraction was on Polygon [POL]. For instance, Solana handled $1.45 million, while $374K was transacted on the Polygon chain on 28th July.
However, not everything seemed to be going well as some traders were unstaking to. In fact, as per Blockworks, traders unstaked $12K $GEOD this week alone, leaving $659K worth of tokens staked.
This suggested that traders may be offloading following the recent surge in prices. Can bulls re-gain ground and surpass the $0.24 zone though?
Can $GEOD break past $0.24?
On the price charts, $GEOD started its recovery this August, breaking back above a month-long support at $0.19. The surge was accompanied by capital inflows, with the Money Flow Index (MFI) reaching overbought territory at 82.81.
However, bulls may face resistance at $0.24-$0.25, a zone that has seen five tests. The bigger target for bulls seemed to sit at $0.30 and $0.37.
Simply put, the sharp rejection hinted at potential buyer exhaustion and profit-taking.
However, a turnover ratio of 0.176 alluded to intense, concentrated buying interest, likely from traders chasing momentum in a low-liquidity token.
Final Summary
- GEODNET surged by more than 37% in 24 hours as volume, burn rate, and transactions exploded.
- $GEOD’s price broke back above a month-long support level, but bulls faced rejection at $0.24.
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