Time to Buy SRM: 3 Reasons Serum is Up 178% to $0.47 in 7 Days

Serum price, which has risen 178% and 253% in just 14 days, is leading the cryptocurrency market comeback in 2023. After Sam Bankman-Fried’s FTX exchange crashed in November, SRM was one of the most popular tokens traded; its price fell by 84% in less than seven days to $0.1336.

Although Serum price rose following the fall, momentum waned at $0.41, allowing for more bearish movement in December. SRM most likely bottomed at $0.1140, a development that might account for the sharp increase to $0.50.

Along with Solana, the price of serum soars

Using an on-chain order book to save fees, Serum is a decentralized exchange (DEX) on the Solana blockchain that was created to improve high-speed trading. SRM, like with many other initiatives in the Solana ecosystem, was affected by the chaotic collapse of FTX and its sister firm Alameda.

There is no question today that FTX/Alameda supported total value locked (TVL), transactions, and token values across the Solana ecosystem, but they were just a small part of the bigger picture, claims a recent analysis on the condition of the Solana ecosystem from Messari, a top crypto analytics platform.

The analysis used important on-chain measurements and sound fundamentals to break through the hype that the Solana ecosystem is dying. It’s important to point out that « the Solana ecosystem still has a network of builders, an ecosystem of applications, and a war chest of capital, as strong as almost any other L1, » said Messari.

Investors expanded their positive horizon to other tokens like Serum, whose trading volume has been on the rise, as the Solana price rose, riding the wave of these measures. On January 14, volume was above $777 million, on January 15, it was $911 million, and as of this writing, it was $237 million.

Serum Price Bottoms Before the Bull Market in 2023

The downturn in serum price looks to have entirely ended in favor of a positive 2023. Investors who suffered greatly during the 2022 bad market run, which saw SRM lose over 100% of its value, have embraced this positive move.

Serum is selling at 96.6% below its all-time high of $13.78 in September 2021, after a 178% breakthrough during the last seven days. The value of SRM is still only a dim reflection of its highs during the last bull run.

Starting with the SuperTrend indicator’s buy signal, a number of technical indicators support the optimistic view for Serum price. Using the average true range (ATR) to determine market volatility, the indicator overlays the chart like a moving average.

As the SuperTrend on the daily chart changed to tail the token, the positive impetus behind the price of serum surged. Investor interest peaked in Solana-based projects, which saw a huge surge in the token’s demand.

For the time being, the Super Trend indicator will trail Serum, maintaining the buy signal, and the path of least resistance will continue to go upward. An further purchase signal from the Moving Average Convergence Divergence (MACD) indicator has strengthened the bulls’ position in the market and their control over SRM.

The MACD (line in blue) crossing over the signal line (line in red) caused the serum price to turn extremely bullish. The second stage of the rally towards highs over $1.00 will be launched by SRM as long as the MACD remains above the mean line while going north.

The 78.6% Fibonacci level barrier is currently the bulls’ biggest obstacle to overcome. Investors’ perspectives would shift if this occurred, encouraging them to stay onto Serum for longer while hoping for a return to the previous record high price of $13.78.

Serum Price Rally Set Off by Post-FTX Comeback Hype

Many people in the cryptocurrency sector rapidly came to the conclusion that Serum’s team as well as it would not survive the FTX smash. The majority of the projects using the protocol swiftly switched to other blockchains like Raydium Protocol and Jupiter Exchange.

Throughout November, conversations around the token showed a « community-wide effort to fork Serum. » Cointelegraph reports that a community-led fork of the Serum version 3 software went live on Solana and at one time had a daily volume of over $1 million. The team said through Twitter that the effects of FTX were so detrimental that « Serum’s volume and liquidity has dropped to near-zero. »

Despite the increase in Serum pricing, it looks that the Serum DEX scenario has not altered considerably between now and November. Only 41 active markets contributed to the platform’s trading volume over the previous 24 hours, which was only barely above $12,6k.

Although the Serum DEX’s poor performance, the positive prognosis for Serum’s pricing may ultimately revive interest in the formerly popular Solana-based platform. With the price of serum climbing the ladder to $13.78 there is a very significant likelihood that demand for Serum DEX will continue to rise.

Serum may be purchased by interested traders who want to benefit from the surge that will probably reach $13.78 in a few months. However, because of its greater risk-reward potential, investors could choose to consider Meta Masters Guild (MEMAG).

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