CKB Price Prediction: Nervos Network is Ripe for a Pullback

CKB price went parabolic as the native token of the Nervos Network surged. The token surged to a high of $0.0036, the highest point since November 9. It has surged by more than 58% from the lowest level this year. The token’s market cap has surged to more than $108 million, making it the 171th biggest coin in the world.

What is Nervos Network?

Nervos Network is a blockchain project that seeks to solve some of the biggest challenges that exist in traditional blockchains like Bitcoin and Ethereum. It is a layered network built to support the needs of decentralized economies. 

The layered architecture means that the network has both layer 1 and layer 2 capabilities. Layer 2 capabilities mean that they can supercharge the applications while being in the same platform. In other words, Nervos Network works as if Ethereum and Polygon were in the same platform. Nervos Network uses a proof of work architecture.

Nervos Network uses the Common Knowledge Base (CKB) token. The token increases the throughput of the proof-of-work consensus. It uses the blockchain orphan rate as a measurement of connectivity across the network.

Nervos Network eliminates the block propagation bottleneck by modifying transaction confirmation into a two-step process known as propose and commit. A transaction must be proposed before it moves into a commitment zone.

Nervos Network had a mixed year in 2022. On the positive side, the number of accounts in the network rose to almost 1.5 million. The hash rate soared to an all-time high and then pulled back. Similarly, its ecosystem saw a lot of growth in a difficult year when crypto prices plunged. Some of the most important apps in its ecosystem are PolyJuice, LeapDAO, and DIA. 

CKB price prediction

The daily chart shows that the CKB price has been in a bullish trend in the past few days. It has managed to move above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level. Therefore, CKB price will likely resume the bearish trend as the bullish momentum wanes. If this happens, the next key level to watch will be at $0.025.