Gnosis Could Drop Below $400 Following December’s Rally

GNO, the native token of the Gnosis platform, rallied past the $550 mark last month. However, it has underperformed in recent weeks and risks dropping below the $400 level soon.

GNO Drops Below $420 as Broader Market Underperforms

Gnosis is one of the losers in the market over the past 24 hours. The GNO token has lost 9% of its value in the past few hours and is currently trading at $419.

Gnosis is a prediction market built on the Ethereum blockchain. Gnosis developed numerous products, including Gnosis Safe, Conditional Tokens (prediction markets), Gnosis Protocol (CowSwap), and Gnosis Auction, allowing its users to create, trade, and hold digital assets.

The project uses a dual token structure. GNO tokens are used to generate the OWL tokens via a staking mechanism.

There is no major catalyst behind GNO’s recent pullback. The broader cryptocurrency market has lost more than $200 billion over the past week, with the total market cap now below $2 trillion.

GNO’s latest bearish performance comes after the token rallied past the $557 mark on December 30. Since the start of the year, GNO has lost more than 20% of its value and could record further losses in the coming hours and days.

GNO Could Drop Below $400

The GNO/USD daily chart is bearish at the moment, thanks to the token’s recent performance.

GNO recently dropped below its 50-day moving average price of $450. The MACD is still above the neutral zone, while the RSI of 43 shows that GNO is facing selling pressure at the moment.

If the selling pressure persists, GNO could drop below the $400 psychological level over the next few hours. An extended bearish performance could see GNO fall to November’s high of $370 before the end of the day.

If the bulls regain control, GNO could top its 50-day moving average of $450 soon. However, it would need the support of the broader cryptocurrency market to cross the $500 resistance level.