NCT, the token powering PolySwarm’s decentralized cybersecurity marketplace, has witnessed a roller coaster ride since the start of the year.
After hitting a yearly high of $0.1103 on January 7 causing excitement among investors, the token plummeted to a low of around $0.033 leading to panic among investors.
However, the token has witnessed a surge over the past two days and managed to bounce back by 33% from the recent bottom.
While the recovery has instilled a sense of confidence among investors, the recovery comes with its own set of risks, painting a complex picture for potential and current stakeholders.
What is behind the current NCT price recovery?
The recovery of NCT can be attributed to several factors. Primarily, there’s the inherent value proposition of PolySwarm’s platform, which offers a unique, decentralized approach to cybersecurity.
By incentivizing a global network of security experts to compete in threat detection, PolySwarm not only addresses immediate cybersecurity concerns but also fosters an environment ripe for innovation.
This model has resonated well with investors who see long-term potential in a platform that could redefine digital safety.
Moreover, the broader market’s reaction to cybersecurity news has also played a role.
With cyber threats becoming more sophisticated, platforms like PolySwarm that offer real-time, community-driven solutions gain traction, leading to increased investment and, consequently, a recovery in token value.
How far can the PolySwarm (NCT) price rise?
The future for NCT could be bright if PolySwarm continues to innovate and expand its user base.
The platform’s approach to cybersecurity, leveraging community and competition, could set a new standard in the industry.
However, for this to happen, PolySwarm must navigate the volatile crypto market with strategic foresight, ensuring that its value proposition remains compelling amidst evolving threats and market dynamics.
In the meantime, the daily chart signals a possible pullback with the current candlestick being bearish and the price currently between the 9-day and the 21-day MA.
Seeing that the 21-day MA had already crossed above the 9-day MA if the price drops below the 9-day MA, we could see a further decline back to around $0.033.
However, if the current candlestick closes above the 9-day MA and the next candlestick moves above the 21-day MA, then we could witness a resumption of the recovery.
The RSI is neutral at around the 49 level having dipped slightly after hitting 52, signalling a state of market indecisiveness with a breakout in either direction being possible.
The risk that lies ahead for investors
This recovery from the recent dip comes with caveats. The crypto market is notoriously unpredictable, and NCT’s journey is no exception.
The primary risk lies in the token’s susceptibility to the whims of market sentiment, particularly in a sector as sensitive as cybersecurity.
Any major cybersecurity breach or news of a competing platform could swiftly reverse NCT’s gains.
Another significant risk is regulatory uncertainty. As governments worldwide grapple with how to regulate cryptocurrencies, any adverse regulatory action could impact NCT’s market performance.
Given PolySwarm’s integration of blockchain technology for security solutions, it’s at the intersection of two highly regulated areas: finance and cybersecurity.
Market manipulation also poses a risk. The crypto space has seen its fair share of price pumps followed by dumps, and with NCT’s recent performance, there’s always the possibility that speculative trading could lead to another plunge if the hype doesn’t translate into sustained demand.
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