Golem price prediction: huge drop coming after going parabolic

The Golem price went parabolic on Thursday as demand for the cryptocurrency surged. The GLM/USD token surged to a high of $0.388, which was the highest level since May 5th this year. It was also about 160% above its lowest level in May, bringing its total market cap to more than $400 million making it the 124th biggest cryptocurrency in the world.

What is Golem?

Golem is an upcoming blockchain project that enables developers to build platforms in a simple way. It is a lightweight protocol for building unstoppable applications. It has a modular and cutting-edge architecture that make it easy to build quality software. 

Golem describes itself as ‘the truly decentralized supercomputer’ that enables developers to build fast while saving money. It connects computers in a peer-to-peer network that enable both application owners and individual users to rent resources of other users machines. As such, it is both a platform-as-a-service and a platform-as-a-service.

The GLM token, which was previously known as GNT, is the native currency that powers this ecosystem. It is used as a payment mechanism from requesters to providers. It is also used for other interactions within the Golem network.

According to Golem’s dashboard, the network’s activity has been in an upward trend in the past few months. At the time of writing, there were 618 providers and 18.35 terabytes of memory to compute. Still, it is unclear why the Golem price has made a strong recovery on Thursday since there have been no major news from the developers.

Golem price prediction

Turning to the four-hour chart, we see that the Golem price went parabolic on Thursday. As it rose, the coin’s price managed to move above the important resistance at $0.3370, which was the highest level on May 18th. It also retested the 78.6% Fibonacci retracement level and moved above the 25-day and 50-day moving averages.

Notably, the pump happened in a time when volume was rising, which is usually a bullish sign. In the past, such parabolic pumps tend to be short-lived. Therefore, there is a likelihood that the Golem coin will have a major nosedive in the coming sessions. If this happens, the next key level to watch will be at $0.3.

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