On April 14, Binance announced the listing of its fourth Megadrop project, KERNEL, for five trading pairs.
Other centralized exchanges such as Kraken, Coinbase, and HTX followed suit shortly afterward.
While the KERNEL price fell slightly after its launch, it created three successively higher lows.
Let’s examine the price action and see what lies ahead.
What is KERNEL?
KernelDAO is a restaking security protocol on the BNB chain. Users can restake assets like BNB and Bitcoin (BTC) to earn even more rewards.
On top of being a governance token , KERNEL provides restaking security and slashing insurance.
Binance announced its Megadrop for Kernel between April 9 and 13. Users locked BNB to receive KERNEL.
Over 1.7 million users participated, which was the largest turnout in Binance Megadrop history.
The KERNEL maximum supply has 1 billion tokens, with 162 million circulating at launch. As for distribution, 55% are for community rewards, 20% went to the team, 20% to a private sale, and 5% to the ecosystem fund.
KERNEL will reach its full supply after 80 months through various unlocks, including multiple airdrops, cliff unlocks, and gradual vesting schedules.
Despite launching its token just now, the protocol already has a Total Value Locked (TVL) of $1.6 billion, indicating interest in its retaking mechanisms.
With its market cap of only $50 million, the TVL is over 32 times as big, a sign of undervaluation.
KERNEL Price Falls After Launch
The KERNEL price fell sharply after its launch, reaching a low of $0.257.
However, it has regained its footing since then, creating successive higher lows (green icons).
The price movement creates a symmetrical triangle. The wave count is in black, suggesting there is another test of the triangle left.
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Since the triangle transpires after a downward movement, a breakdown from it is the most likely future outlook.
If that happens, the KERNEL price could fall to a low of $0.202. The 1.61 external Fibonacci retracement of the triangle’s height creates this target.
However, it is worth noting that there is insufficient price history to confidently predict where the KERNEL price will head next.
Successful Launch
KERNEL launched without any notable issues or complaints from the community.
The growing TVL is a positive sign of future growth, noting interest in the restaking protocol.
The future trend is still undetermined because there is insufficient price history. The short-term trend depends on the resolution of the symmetrical triangle.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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