According to reports from AMBCrypto, Derive [DRV] recorded a hike of more than 40% in the last 24 hours, significantly outperforming major cryptocurrencies like Bitcoin and Ethereum which saw red. The altcoin's daily trading volume surged by more than 463%, surpassing $25 million at press time. This surge came after DRV had been recovering from a 52% correction from its previous all-time high of $0.19. The altcoin had been recovering after a bear phase that lasted over two months, with the recent hike marking a significant recovery milestone.
As reported by AMBCrypto, market bulls pushed DRV back to the zone around its ATH, but faced a test at the same supply zone between $0.19 and $0.20. This represented the fourth time DRV hit this zone, which has been a hurdle even in previous rallies. At press time, the altcoin was valued at $0.24 after hitting a new ATH of $0.28 a few hours ago. However, the indicators showed mixed signals - DRV's price was trading above the 100 and 200 EMAs, indicating a bullish scenario. The Bull Bear Power (BBP) flipped green over the past three sessions, supporting the current rally momentum.
According to AMBCrypto, the 20% rally came from a spike in trading sentiment after Derive posted the V3 plan on its project forum. The V3 upgrade will move custody to Ethereum mainnet and split risk books so that real-world assets (RWAs) and more altcoins could list faster. This upgrade will also keep feeding DRV buybacks with protocol fees, with 35% of the fees being used to buy back the token. The 84th weekly buyback event purchased 199.76K DRV at an average price of $0.14, taking the total to 27.645 million tokens.
As reported by AMBCrypto, if DRV loses the $0.13-zone as support, it may revert to its correction phase again. In such a scenario, a bullish reaction may be anticipated at $0.11 and $0.09. The altcoin has been surging from $0.09 to $0.20 since 19th August, with the current rally potentially being an exit pump. However, the controlled circulating supply due to buybacks and over 67.63% of the supply in staked addresses has provided fundamental support for the token's price action.
