Centrifuge (CFG) was among the most popular real asset (RWA) issuers last week. CFG has been among the biggest gainers among the top 300 cryptocurrencies by market cap, posting a double-digit return of 32% for the third day in the last 24 hours.
Can the bulls maintain this momentum and push CFG to break higher resistance levels?
What could follow CFG’s price rise?
On the 4-hour chart, CFG broke out of the ascending triangle consolidation with the price rising to $0.26. Shortly thereafter, sellers countered the move and the altcoin has since fallen to $0.2267.
Generally, prices tend to enter healthy corrections after such breakouts. This indicated that Centrifuge prices could begin to fall around the 0.5 Fibonacci Retracement level or into the optimal reversal zones between the 0.618 and 0.786 Fib levels.
Since there are almost no resistance levels on larger time frames, a break above $0.26 will bring $0.35 into view.
Cumulative Volume Delta (CVD) showed that the price may have reached the highest level of the day. From the peak net purchasing volume of 4.86 million tokens, more than 514 thousand CFGs were sold, falling into the red zone.
However, the Trend Strength Index (TSI) showed that the directional trend is still intact even if the price pulls back. With a TSI reading of 0.83, this meant that the strength of the bull trend was in the 80th percentile.
Tracking Centrifuge’s RWA capital
On the network activity side, Centrifuge hit a new monthly high for asset senders on the 24th and a new monthly high for holders on the 23rd. This indicated growth in RWA issuance, although the pace was slow.
RWA’s capital allocation to Centrifuge increased by 45.3% this month, from $1.17 billion to $1.7 billion. CFG’s monthly token trading volume also increased by 154%, reaching $1 billion.
This capital deployment has pushed Centrifuge to the 5th position in the Total Value Locked (TVL) ranking among RWA issuers. In the tokenization race, BitGo, Securitize, Ondo Finance and BlackRock ranked above CFG, respectively.
Investors are investing in tokenization
Additionally, Centrifuge gained its momentum from the industry’s optimistic outlook on tokenization.
For example, two out of three operators expected tokenized asset AUM to exceed $150 billion by the end of 2027. Only 33% expected a lower value, while 30% believed AUM would be between $50 billion and $150 billion, while only 3% saw a value below $50 billion.
Overall, the measurements showed that network activity and bullishness are not the only factors driving the CFG price, but a broader belief in tokenization also plays a role.
Final Summary
- As tokenization discourse continues to gain momentum, Centrifuge increased by 32% in 24 hours.
- CFG may be entering a correction phase, but a break above $0.26 could signal a continuation of the rally.
