Centrifuge [CFG] is among the most trendy real-world asset (RWA) issuers in the past week. CFG recorded its third day of double-digit returns of 32% in the past 24 hours, becoming among the top gainers for the top 300 cryptos by market cap.
Can bulls keep this momentum and push CFG to break higher resistance levels?
What could follow CFG’s price breakout?
On the 4-hour chart, CFG broke out of an ascending triangle consolidation with the price spiking to $0.26. Shortly, sellers countered the move, and the altcoin has since dropped to $0.2267.
Usually, prices tend to enter healthy corrections after such breakouts. That suggested that Centrifuge prices may start dipping to around the 0.5 Fibonacci Retracement level or optimal reversal zones between the 0.618 and 0.786 Fib levels.
Breaking above $0.26 would put $0.35 in sight, as there are close to no resistance levels above on the bigger timeframes.
The Cumulative Volume Delta (CVD) indicated the price may have reached its high of the day. It dropped to the red zone with a reading of more than 514K CFG being sold from a peak net buying volume of 4.86 million tokens.
However, the Trend Strength Index (TSI) showed the direction bias was still intact even though the price was pulling back. With a TSI reading of 0.83, it meant bull trend strength was in the 80th percentile.
Tracking Centrifuge’s RWA capital
On the network activity side, Centrifuge hit a new monthly peak for asset senders at 24 and a new high for holders at 23. This indicated growth in RWA issuance, though the pace was slow.
RWA’s capital deployed on Centrifuge this month rose by 45.3%, reaching $1.7 billion from $1.17 billion. CFG’s monthly token trading volume also jumped by 154%, recorded at $1 billion.
This capital deployment pushed Centrifuge to position 5 in Total Value Locked (TVL) among RWA issuers. Above CFG in the tokenization race were BitGo, Securitize, Ondo Finance, and BlackRock, respectively.
Traders bet on tokenization
Furthermore, Centrifuge drew its momentum from the industry’s optimistic outlook on tokenization.
For instance, two out of three operators expected tokenized asset AUM to exceed $150 billion by the end of 2027. Only 33% anticipated a lower value, with 30% believing AUM will be between $50 billion and $150 billion, while only 3% saw a value below $50 billion.
Overall, the metrics indicated that network activity and bullish breakout were not the only factors driving CFG price, but a broader belief in tokenization also played a role.
Final Summary
- Centrifuge surges 32% in 24 hours as tokenization narratives continue to gain pace.
- CFG may be entering a correction phase, but breaking above $0.26 could suggest a rally continuation.
