What is PIVX and why did it go parabolic?

The PIVX (PIVX/USD) price went parabolic on Tuesday as demand for the small-cap token jumped. The coin jumped by over 50% within a few minutes and reached a high of $0.2496, which was the highest level since April 24th. It then pulled back slightly and is trading at $0.1747, bringing its total market cap to $12 million.

What is PIVX and why is it rising?

PIVX stands for Protected Instant Verified Transaction. It is a blockchain project that was previously known as Darknet. It rebranded to PIVX in 2017.

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In its early days, the network was based on proof-of-work technology. It then went through changes and shifted to a proof-of-stake platform. Also, the platform is using a zero-knowledge technology that makes it fast and cost-effective.

PIVX currently works as a private cryptocurrency that is extremely fast and cost-effective. It solves the privacy part by having four types of shields. First, one can send funds from a transparent address to a transparent adress that is visible in the network.

Second, there is the de-shielding format, where you move funds from a shield address to a transparent one. Third, there is a shielding approach, where you send coins from a transparent address to a shield one. Finally, there is the shield one where you send funds from shield to shield. By having this variety, one is able to move funds according to their preference.

The PIVX price is rising as investors cheer the rewards in its ecosystem. According to the developers, there are now 1,713 masternodes in the network with an annual reward of 9.21%. The current PIVX locked in Masternodes rose to 24.73%.

PIVX price prediction

The four-hour chart shows that the PIVX price went parabolic on Tuesday. As this happened, it managed to move above the important resistance level at $0.1880, which was the highest level on May 20th. The coin soared above the 25-day and 50-day moving averages while the Money Flow Index (MFI) move to the overbought level.

In my view, this rebound is not sustainable and there is a likelihood that it will return to the range where it was previously. This range is about 30% below the current level.

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*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.