Skale Network Price Prediction: SKL Becomes Extremely Overbought

Skale Network’s price has rebounded in recent days as investors applaud the platform’s growth. The SKL token is trading at $0.2770, which is the highest since December 2021. It is up over 189% from its low this year. As a result, its total market cap jumped to over $955 million, making it the 112th largest coin in the world.

What is Skale Network and why is it growing?

The blockchain industry has grown rapidly over the past few years. This performance was mainly driven by sectors such as decentralized finance (DeFi), non-fungible tokens (NFT) and the metaverse.

Ethereum has become the most important platform in the industry. Indeed, most of the decentralized apps you know like Axie Infinity and Decentraland were all built using Ethereum technology.

But Ethereum is a lagging platform known for slow speeds, high gas fees, and other challenges. To solve this problem, developers have come up with alternatives to Ethereum such as Solana, Polkadot, and Avalanche.

Another approach used by developers is known as Layer 2 networks like Polygon and Loopring. These platforms help supercharge Ethereum’s network by accelerating their off-network applications.

Skale Network uses the same approach to increase throughput, reduce latency, and lower the cost of Ethereum applications. It is a side chain that uses Byzantine Configurable Fault Tolerant Technology (BFT).

One of the main reasons for the price of the Skale network to rise is that developers are getting more and more interested in the network. For example, in a statement on Thursday, Skale announced that CLET Name Service plans to launch on the platform. CLET describes itself as the first human-readable cryptocurrency wallet name service. The CEO noted:

Everyone in the blockchain space needs Clet in their toolkit because it simplifies the most important fundamentals of cryptocurrency transactions.”

Skale Network Price Prediction

The daily chart shows that the price of SKL has made a dramatic comeback in recent days. Along the way, it managed to break above the important resistance at $0.1766, which was the low level in July last year. It also broke through the important resistance level shown in the purple descending trendline.

Moreover, the price of the Skale network managed to break above the 25-day moving average, while the relative strength index (RSI) reached the highest level ever. This signals that the coin is extremely overbought and its price will resume the downtrend. Here are some of the best cryptocurrency brokers to invest in Skale.