Derive [DRV] recorded a hike of more than 40% in the last 24 hours as the likes of Bitcoin [BTC] and Ethereum [ETH] saw red. In fact, its daily trading volume surged by more than 463% too, surpassing $25 million at press time.
The altcoin had been recovering after a 52% correction from its previous all-time high (ATH) of $0.19.
The Upbit listing drove its initial rally, but some investors were skeptical about a continuation. And soon enough, DRV entered a bear phase which lasted over two months. Until the recent hike.
Can DRV bulls sustain surge past the $0.19-$0.20 zone?
Market bulls pushed back the altcoin to the zone around its ATH. However, they still faced a test at the same supply zone between $0.19 and $0.20. This was the fourth time DRV hit this zone as it was a hurdle even in the previous rally.
Still, this rally could be an exit pump as DRV has been surging from $0.09 to $0.20 since 19th August.
However, the indicators seemed to say otherwise, at least on the 4-hour timeframe. For instance, DRV’s price was trading above the 100 and 200 EMAs, a bullish scenario.
Similarly, the Bull Bear Power (BBP) flipped green over the past three sessions. That may be a reason why at press time, the altcoin was valued at $0.24 after hitting a new ATH of $0.28 a few hours ago.
On the contrary, if DRV loses the $0.13-zone as support, it may revert to its correction phase again. In such a scenario, a bullish reaction may be anticipated at $0.11 and $0.09.
What is keeping investor enthusiasm alive since its post-listing rally though?
DRV’s real catalysts include…
Network upgrades, buybacks, and staking have been driving DRV. The 20% rally came from a spike in trading sentiment after Derive posted the V3 plan on its project forum. The OP Stack chain is now being wound down too.
The V3 upgrade will move custody to Ethereum [ETH] mainnet and split risk books so that real-world assets (RWAs) and more altcoins could list faster. Furthermore, it keeps feeding DRV buybacks with protocol fees.
In other words, 35% of the fees have been used to buy back the token. Its 84th weekly buyback event purchased 199.76K DRV at an average price of $0.14, taking the total to 27.645 million tokens.
This activity has kept the circulating supply of DRV controlled. Moreover, staking has helped too, with over 67.63% of the supply in the staked address.
Simply put, DRV’s continuation will hinge on these fundamentals and the technical outlook.
Final Summary
- DRV surged by over 20% after Derive posted a plan for a V3 upgrade as buybacks surged.Â
- Altcoin hit a new ATH on the charts, before retracing again. Â
