DEGEN Token Holds Strong Despite Degen Chain’s Block Production Halt

Wu Blockchain, a crypto news reporter, brought to light that the L3 blockchain Degen Chain has halted block production for more than 11 hours, with the reason behind it still undisclosed. Degen Chain, developed by Syndicate and formerly supported by a16z, operates on Arbitrum Orbit. Degen Chain’s Gas token, DEGEN, serves as the principal currency of Farcaster.

The L3 blockchain Degen Chain has stopped producing blocks for more than 11 hours, the reason is unknown. Degen Chain was built by Syndicate, which was once invested by a16z, using Arbitrum Orbit. Its Gas token DEGEN is the largest coin of Farcaster.https://t.co/tpMYeGzQ9j

— Wu Blockchain (@WuBlockchain) May 13, 2024

Despite the fallout, the DEGEN token’s market performance remains resilient. DEGEN’s current price is $0.018955, and its 24-hour trading volume exceeds $26 million. This is a 3.69% growth in the last 24 hours. Concurrently, it has fallen 13.61% in the previous seven days.

Moreover, its market cap stands at $268.77 million, backed by a circulating supply of over 14 billion coins. Investors are closely monitoring the situation, as Degen Chain’s status directly influences DEGEN’s market dynamics.

Analyzing DEGEN’s technical indicators provides insights into its current market sentiment and potential future trends. The Relative Strength Index (RSI) on the 4-hour price chart sits at 51.86, signaling a neutral stance among traders.

Source: TradingView

However, the KST indicator, at 8.1201, indicates that additional investigation is required to determine the stock’s performance trajectory. In addition, the Moving Average Convergence Divergence (MACD) indicator signals a positive trend reversal, providing traders with optimism in the face of uncertainty.

Delving deeper into the price action, DEGEN experienced a volatile start. Witnessing a sharp decline early in the morning, it bottomed out around 7:30 AM. However, the token staged a remarkable recovery after that, steadily climbing for several hours.

Around 9:00 AM, the pace of recovery accelerated, propelling DEGEN to surpass its initial price, reaching a peak of $0.019 before 11:00 AM. Following the peak, a minor correction ensued, though the price remained significantly higher than both its starting point and the day’s low.

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