REZ crypto surged by as high as 60% after being listed on Coinbase. What is REZ, and is it headed towards more potential gains?
According to data from CoinGecko, Renzo (REZ) rallied to an intraday high of $0.032, over 145% higher than its lowest point this year. The altcoin’s market cap was seated at $63 million, while its daily trading volume more than doubled over the previous day at nearly $281 million.
REZ’s gains were accompanied by a surge in demand from derivatives traders. According to CoinGlass data, open interest in its futures market jumped 92% to an all-time high of $42 million. However, weighted funding rates have fallen further into negative territory as most traders seem to bet on a potential short-term price drop.
Most of the gains today came after REZ recently secured a listing on Coinbase on the Ethereum (ERC-20 token) network. The altcoin has been rallying since the exchange announced its listing.
On March 5, it shot up over 41% after Coinbase first revealed it would be listing Renzo. Since then, the token has rallied over 82% and hit a monthly high of $0.032 on March 7.
The rally has been supported by increased whale activity, with the number of large holder addresses hodling between 10,000 to 100 million tokens spiking over the past 24 hours, while the number of daily active addresses on the network has been rising over the past 2 days.
Analysts believe REZ could maintain its bullish trajectory as long as it holds above the key support range of $0.01674 to $0.01724.
Technical indicators also present a bullish outlook for the altcoin, likely supporting more gains ahead.
On the 1-day/USDT price chart, the Aroon Up indicator at 92.86% and Aroon Down at 28.57% confirm strong buying pressure, which signals a dominant uptrend. The MACD and signal lines have moved upward, presenting the potential of a bullish reversal, which could lead to more gains over the upcoming days.
Sell-off concerns loom
However, the rally could abruptly come to an end due to sell-side pressure. When writing, REZ had lost some of the past day’s gains but was up 41.5%.
Some community members are concerned over a potential sell-off by VC Funds and the Renzo team, who currently hold a combined 51.6% of the altcoin’s total supply.
Listing on a major crypto exchange such as Coinbase or Binance typically leads to a significant surge in the related asset’s price. However, they tend to face a mean drop following such listings.
As crypto.news reported earlier, following its previous listing on Binance, REZ dropped 43% within a day.
What is REZ crypto?
Founded in 2023, U.S.-based Renzo is a re-staking protocol that lets users stake a variety of crypto assets while offering features like auto-compounding rewards and automated risk management.
REZ, which serves as the native and governance token, can be restaked through EigenLayer, allowing holders to secure various Actively Validated Services and earn additional rewards.
Besides Coinbase, REZ is available on several major crypto exchanges, including Binance, Gate.io, Kraken, and KuCoin, among others.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
