The July 1 announcement had the scalable blockchain platform Elrond informing its customer about launching its DEX (decentralized exchange), the Jungle DEX. The team stated that the DEX isn’t only a product launch but the gateway to raw, real innovation.
Jungle DEX would run as an AMM (automated market maker), allowing the trading and listing on any ESDT (Elrond Standard Digital Token). Meanwhile, the platform’s native token EGLD has consolidated within a constricted range on its daily price chart.
Price Assessment
The gradual buying momentum increase since the DEX launch triggered price upticks in EGLD. The alternative token surged to the $5708 high between July 1 and July 7. However, bears emerged to initiate an immediate retracement, pushing the alt further down.
While publishing this content, EGLD traded around the $50.13 mark. Coinmarketcap data shows the altcoin lost approximately 10% within 24 hours. Also, bears dominate the space, and EGLD might slump further in the coming sessions.
Though trading volume gained 17% during that timeframe, the absence of a corresponding price surge confirmed increasing EGLD distribution during this publication.
Meanwhile, the daily chart placed the RSI (Relative Strength Index) beneath the 50-neutral since the DEX launch. Increased sell-offs forced the indicator into a downside curve after the RSI touched the 47.79 high on July 9. It hovered around 40.55 at this publication.
Also, the MFI (Money Flow Index) undertook a downside spiral following the decentralized exchange launch, indicating increased selling momentum. The MFI hit the 36 lows on July 8 from July 1’s 50.21. It stood near 50.92 during this publication.
On-Chain Performance
The EGLD token could not record rallies on social metrics since the Jungle DEX inception. The asset’s social dominance saw a 33% slump during the phase under review. Moreover, the social volume declines by 80% over that timeframe.
Conversely, Elrond saw a 0.5% increase in development activity during the reviewed period. Analysts attribute this growth to the ecosystem updates such as the Elrond-go upgrade and Elrond Dev Hub launch.
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