In the last 24 hours the r/Cryptocurrency Moons has witnessed more than 100% growth from $0.1588 to $0.3388.
The reddit channel or subreddit "r/Cryptocurrency" has a token on Arbitrum Nova called as the r/Cryptocurrency Moons.
The primary reason behind the growth was the change in Reddit's TOS which will now include Web3 goods such as Crypto Community Points, Collectible Avatars (NFTs) and other verified virtual assets.
Bobby Ong, the co-founder and COO of CoinGecko tweeted yesterday that the cryptocurrency of the popular subreddit r/Cryptocurrency was suddenly showing a spike in its token price.
Upon investigating further, he found that this was due to a change in Reddit which will end its Web2 based rewards, points, avatars, awards, and collectibles. Reddit will replace them with Web3 assets such as NFTs, Crypto Tokens, and a few other Web3 assets.
The same was tweeted by r/Cryptocurrency two days back on 16 July, 2023.
It is noteworthy that the subreddit has one of the largest crypto communities with over 6.6 Million members out of which at least 5-10k are always active. As per Reddit, it is one of the Top 1% groups on the social media platform.
For a community that is built around the idea of cryptocurrencies, it would be delightful for members in these Web3 based communities to be able to execute daily functions using blockchain technology.
NFTs could replace avatars and since NFTs are stored in your wallet and not on Reddit, it certainly gives you the kick of owning something.
Community rewards like Reddit awards, experience points or upvotes if connected with transferable tokens can help accounts have some additional income from the content they create. It would also help encourage new joiners to interact more with the community.
The Moons token was launched more than two years back in March 2021 as ERC-20 tokens. Currently they are on Arbitrum, an Ethereum L2.
Following the community's tweet on Reddit doing away with Web2 rewards and avatars and replacing them with Web3 virtual assets, it became clear that the community token r/Cryptocurrency Moons will surely play a central role in distributing reward points.
Since the community already had a token with 106 million approximate supply, the rush to buy the token only went further. This caused a speculation which prompted other community members to buy the token even at elevated prices.
Now that we have a brief idea why community tokens would be popular especially in Web3 communities, it is now easier for us to understand the 100%+ price rise in the price.
Technical analysis shows that the price has recently crossed a major resistance at $0.34 which makes room for further upside.
But, we need to be careful as the crypto token has already entered the overbought zone(RSI above 70). The RSI is now at 93 at press time which also indicated that buyers may start to book profits soon.
Trading volume has been positive since past few days which indicates that there are lesser chances of price manipulation. We can expect a 10-15% further rise in prices before people start booking profits. The reason is that buying volume has already peaked and is slowing down.
However, if you trade with a stoploss, your loss becomes limited. Buying at current levels seems to be a good option here with a stoploss of $0.33.
Since the cryptocurrency is at all-time high, there can be no price prediction targets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.