Perpetual Protocol is a DeFi project that runs on the Ethereum blockchain and allows users to buy and sell derivative contracts without the need for intermediaries. It uses smart contracts to replicate services offered in derivatives markets, which means users can trust the code to execute trades as written.
Perpetual Protocol is designed for leverage trading, short positions, and low levels of slippage. It uses a vAMM and collateralization vault to settle trades and enable anyone to access complex financial instruments such as perpetual contracts.
The Recent Innovation of Perpetual
Recently, Perpetual Protocol launched ‘Hot Tub Vaults’ to capitalize on arbitrage opportunities for Optimism’s native OP token. These vaults automate the process of earning profits from arbitrage trading, making alpha accessible to all and giving users access to a sustainable yield.
Users can deposit Optimism’s OP tokens or USDC stablecoins into the vaults, which will then perform arbitrage trades for the OP token across spot exchanges like Uniswap and Perpetual Protocol’s derivatives exchange.
The Hot Tub’s OP vaults provide a source of passive income for crypto holders looking to diversify their portfolios. They simplify arbitrage trading by removing complexity and automating the process, making it more accessible to users who may not have the expertise or resources to engage in arbitrage trading manually.
Secure and Transparent
The Hot Tub’s arbitrage vaults provide a secure and transparent way for users to participate in arbitrage trading, without any reliance on centralized entities. The use of Optimism’s Layer 2 scaling solution allows for reduced gas fees, making it more cost-effective for users to participate in on-chain arbitrage trading.
Technical Analysis and Prediction of the PERP Coin Price
The price of Perpetual Protocol has been continuously decreasing since December 2021. In the past year, the price has broken and hasn’t seen a significant recovery or volume price action. In November 2022, the PERP coin price broke again, forming a new low of $0.314, which indicates a bearish signal.
Due to substantial selling pressure in the PERP coin price over the past few months, the current technical analysis foresees higher risk. The PERP coin has the potential to be a good option if the bullish traders invested at lower levels. It is less likely that the PERP token will maintain a sideways trending market.
The current support levels are at $0.630 and $0.558. Similarly, when we go up, bears are at the resistance levels of $0.7344 and $0.9154. The price prediction at the current market will be bullish, but the bulls will have to break past the immediate price level.
Conclusion
Perpetual Protocol has introduced a new feature called ‘Hot Tub Vaults’ which aims to take advantage of arbitrage opportunities for Optimism’s OP token. These vaults offer a way for cryptocurrency holders to diversify their investment portfolios and earn passive income through the OP token. The current price prediction for the PERP coin price is bullish.
Technical Levels
- Support Levels: $0.630 and $0.558.
- Resistance Levels: $0.7344 and $0.9154.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Source: https://www.thecoinrepublic.com/2023/12/14/perp-coin-prediction-the-fundamental-and-technical-analysis/