NKN (NKN) price soaring: What is the driving force behind the 2025 craze?

Market Overview

In the first quarter of 2025, the cryptocurrency market exhibited a volatile pattern under the influence of macroeconomic uncertainties (such as the high interest rate policy of the Federal Reserve in the United States and global trade tensions). According to CoinMarketCap data, the total market value of global cryptocurrencies is approximately $2.7 trillion, with Bitcoin accounting for about 55% of the market value. Despite the market sentiment shifting from greed to neutrality, the decentralized infrastructure (DePIN) sector has attracted attention due to its practical application scenarios. As a representative in the DePIN field, NKN has shown outstanding performance. Compared to other tokens in the Ethereum ecosystem (which rose by 12.7% overall), NKN's weekly decline of 5.31% still demonstrates its relative resilience to downturns.

NKN's price performance is closely related to the overall popularity of the DePIN sector. With the growth in demand for decentralized networks, especially driven by applications such as content transmission and edge computing, the ecological adoption rate of NKN is steadily increasing. In the macro environment, the rebound of the US stock market due to tariff relief indirectly boosted confidence in the cryptocurrency market. For example, on April 9th, after the US announced a 90-day tariff suspension, NKN briefly broke through $0.06, reflecting the market's optimistic sentiment towards risk assets. Overall, NKN demonstrates steady potential in the current market, but its price volatility needs to be carefully monitored.

Price performance and trading volume analysis

Over the past 7 days (April 14th to April 20th), the NKN price fell from $0.0623 to $0.0589, with a weekly decline of about 5.31%. The highest point during this period was $0.0623 (April 14th), while the lowest point was touched on April 19th at $0.0589. As for the trading volume, the 24-hour trading volume on April 19th reached $315.7 million, a sharp increase of 667.9% from the previous day, showing a high level of market attention to NKN. However, the trading volume subsequently slightly declined, indicating that the price may enter a consolidation phase.

NKN has relatively high volatility, with an average daily volatility of about 5-10%, higher than Bitcoin's 3-5%, reflecting its speculative nature as a mid-cap token. Compared to other DeFi-type tokens, NKN's performance is consistent with the overall trend of the sector, but the surge in trading volume indicates investors' interest in its ecosystem progress. According to CoinGecko data, NKN is ranked #796 in the market with a market value of approximately $46.1 million, indicating that there is still significant room for growth.

Technical indicators and chart patterns

Technical analysis shows that NKN has recently formed a 'descending channel' pattern, with prices oscillating between $0.0482 and $0.0637. On April 19, the price tested the $0.0482 support level and rebounded, indicating buying support. The Relative Strength Index (RSI) is currently at 39.17 (CoinCodex data), in the neutral to lower range, suggesting a possible rebound in the short term. The MACD indicator is showing a bearish signal, indicating selling pressure still exists. The 50-day Simple Moving Average (SMA) is at $0.1064, with prices below this average, reflecting a weak mid-term trend.

The key resistance level is at $0.0637, and if broken, it may challenge $0.0808; the support level is at $0.0482, and if it falls below, it may further test $0.0234 (CoinLore data). The current technical outlook is neutral, and investors need to pay attention to whether the price can break through the upper boundary of the descending channel to confirm a trend reversal.

On-chain data and whale movements

On-chain data shows that the adoption rate of the NKN ecosystem is steadily increasing. According to CoinMarketCap, the NKN network has over 101,000 nodes, far exceeding Bitcoin (about 10,000) and Ethereum, demonstrating its strong decentralized network scale. The number of active addresses has remained stable in the past 30 days, and the daily transaction volume has not significantly decreased, reflecting that network usage has not weakened due to price fluctuations. The circulating supply is 786.7 million tokens (total supply of 1 billion tokens), matching the market value with the ecological potential.

Regarding the movements of large holders, on-chain data does not show significant whale selling behavior. The net flow on exchanges shows a clear trend of NKN outflows from April 14th to April 19th, indicating that investors tend to transfer tokens to cold wallets for long-term holding, which is usually considered a bullish signal. However, there was a slight increase in exchange inflows on April 19th, possibly related to profit-taking in the short term. Overall, on-chain data reflects confidence in the long-term value of NKN, but short-term selling pressure needs to be closely monitored.

External messages and market sentiment

Recent news has had limited impact on the price of NKN, but the ecological progress provides potential support. On April 19th, NKN officially announced the renewal of the content transmission cooperation agreement with Chinese iQIYI, strengthening its application scenarios in the content distribution field (CoinMarketCap data). Although this news did not directly boost the price, it increased market confidence in the actual application value of NKN. In addition, NKN's D-chat (secure communication application) and nShell (remote terminal access) and other application scenarios continue to attract developer attention, driving ecological expansion.

In terms of market sentiment, the cryptocurrency fear and greed index fell from 'greed' (75) at the end of March to 'neutral' (50) in mid-April, reflecting investors' cautious attitude towards the market. On the X platform, the discussion heat of NKN is moderate, and some users are bearish on its failure to break through the $0.0217 resistance level, predicting a possible pullback to $0.018.@FairySummer3However, long-term investors remain optimistic about the future of NKN's decentralized network. The overall sentiment is neutral, and short-term speculative risks need to be vigilant.

Conclusion and Outlook

Comprehensive analysis shows that NKN's recent price trend is influenced by multiple factors. At the market level, the heat of the DePIN sector provides a favorable environment for NKN; price and trading volume analysis show active buying interest, but there is a consolidation risk; technical indicators are neutral, and whether the downward channel is broken will determine the short-term trend; on-chain data reflects network scale and confidence in long-term holding; news events focus on the progress of ecological applications as a potential positive catalyst. These factors collectively shape NKN's market landscape, demonstrating growth potential, but caution is needed in dealing with short-term volatility.

Looking ahead, if NKN continues to expand its use cases (such as content transmission, edge computing) and breaks through the $0.0637 resistance level, the price is expected to challenge $0.1395 (Gate.com prediction) or even higher (CoinLore predicts a peak of $1.82 in 2025). However, if the market enters a bearish phase or fails to break through on the technical front, the price may retest $0.0482 or lower. Investors should closely monitor technical resistance levels, on-chain data (such as node growth), and ecosystem progress (such as new partnership announcements). This analysis is based on data and trends, and the market is subject to uncertainties. Readers are advised to stay updated on the latest information through platforms such as Gate.com, CoinGecko, etc., to keep track of NKN's dynamic development.