Taraxa (TARA) is one of the trending cryptocurrencies of the day, as its price has hit intraday highs of $0.014 on Wednesday. The outperformance seen on the day dwarfed most altcoins in the top 500 by market cap list, with the intraday pump including over 35% in the past 24 hours.
Taraxa is an EVM-compatible smart contract platform that launched via an ICO in March 2021. Its native token traded to the all-time high of $0.07 that month, however, the crypto winter drove the price of TARA down to nearly $0. It remained constrained around $0.001 until August 1 when it suddenly exploded, gaining more than 800% in the past week.
The surge in TARA’s price is likely due to the community response to the potential of AI integration with an efficient BlockDAG-powered layer-1 blockchain. Usage and adoption across social analytics, dApps development and multi-layered IP licensing has aided the positive outlook for the token. A recent AMA by the team has also shone some spotlight on the token.
According to data from CoinMarketCap, Taraxa’s daily trading volume rose nearly 200% to over $12.46 million as bulls tested the price level last seen in December 2021. The gains have TARA trading more than 800% up in the past week, with performance over the past 30 days accumulating to 1,021% at the time of writing.
From a technical perspective, TARA is firmly in overbought territory as suggested by the overextended RSI on the weekly chart. This suggests immediate term profit-taking weakness is likely. The weekly MACD however shows there’s still room for further strengthening, which could allow for a move to $0.02. The downside nonetheless presents the past of least resistance and a retreat to support at the $0.006 mark could open up a bearish flip to $0.002.