PERP price goes parabolic despite Perpetual Protocol weakness

Perpetual Protocol (PERP) price continued rising on Tuesday as demand for the token rose. PERP surged to a high of $1.70, its highest point since May last year. It has jumped by more than 330% from its lowest point in 2023.

Perpetual Protocol is a decentralized exchange (DEX) on Optimism’s network. It enables trade perpetual swaps and earn returns. According to CoinMarketCap, the network handles about $40 million in transactions, making it a top-30 exchange. 

It is unclear why the PERP price continued rising this week since its on-chain metrics are not all that good. Its daily volume has remained stagnant in the past few months while the total funds locked (TVL) in its ecosystem has dropped to $8.3 million. In ETH terns, Perpetual Protocol’s TVL has dropped to 47,658 down from last year’s high of over 12k.

These numbers mean that the network has not benefited substantially from last year’s cryptocurrency rally. That bull run saw Bitcoin price surge to over $45,000 while the total market cap of all digital coins jumped to more than $1.7 trillion.

Therefore, Perpetual Protocol token price is likely rising because of the Fear of Missing Out (FOMO) in the industry. This situation has pushed most people to cryptocurrencies. For example, Bitcoin jumped to over $45,000 for the first time in over two years.

Perpetual Protocol price forecast

Turning to the daily chart, we see that the PERP price has been in a spectacular bull run in the past few months. This rally is a continuation of what I wrote in my last article on the token here. Perpetual Protocol has remained above the 50-day and 25-day moving averages.

Perpetual Protocol’s Relative Strength Index (RSI) and Stochastic Oscillator have continued rising and are at their overbought levels. Therefore, I suspect that the token will pull back slightly in the coming days as traders fade the rally. If this happens, the token will likely retest the support at $1.3317, its highest point on September 9th.