Demand Network price implodes -65% as sandbox bubble bursts

Request Network price is set to post its fifth consecutive daily loss, erasing most of the gains made in the past week.

Request Network (REQ) jumped nearly 500% on Friday and Saturday, hitting a record high of $1.2002 after The Sandbox signed up for its services. At its peak, the market capitalization of the decentralized payment and billing platform reached $1 billion, and the REQ token was poised to rank among the top 100 cryptocurrencies. However, over $500 million was wiped off the value of the project, dropping Request Network to 164th.

REQ’s parabolic rally came as investors bet that the demand network would be a major beneficiary of the rise of the metaverse. Recently, Metaverse related NFT and gaming tokens like Gala and Enjin coin have been among the best performing digital assets. However, after REQ hit the ATH on Saturday, the euphoric buying dried up, leaving a gap below the price.

REQ Price Analysis

The daily chart shows that the demand network price is plummeting. Currently, REQ is finding some support around the old all-time high at $0.4500. However, REQ may soon cut $0.4500, given the bearish momentum.

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In this case, $0.25000 offers the next level of support. And given the large upside trading volume, I expect to see the tested $0.250000 soon.

Despite the short-term negativity, I think Request Network could deliver an attractive Metaverse game in the long run. However, my preference is to add extreme weakness. Therefore, my interest is between $0.2000 and $0.2500. However, if REQ closes above $0.4500 today, it could encourage bearish buyers. For this reason, a close above $0.4500 invalidates my short-term bearish view.

Request Network Price Table (Daily)

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