Band Protocol plans to expand its ecosystem through the tokenization of real assets (RWA). Despite the bearish risks for the token, the recent upgrade may help the protocol’s native token BAND continue its bull run.

BAND price has been quite volatile recently, with the token fluctuating between $1.44 and $1.6 in the past 7 days. However, the overall trend of the Band Protocol token is bullish, and BAND price has been creating higher highs since May 2.

However, despite the Band Protocol team’s efforts, BAND price faces a bearish risk from a technical formation.

Band Protocol pins its hopes on RWA tokenization
The integration of physical assets into blockchains through tokenization is changing asset liquidity and market dynamics. As the market gradually includes tangible assets such as real estate and corporate bonds, the demand for accurate decentralized data sources is also growing.

Band Protocol is expected to benefit from this integration by providing real-time, reliable data to blockchain platforms. The protocol securely provides necessary data to various networks, increasing their utility and potentially increasing the intrinsic value of the BAND token.

These capabilities will be expanded in the upcoming Band v3 upgrade, which will increase transaction speeds and reduce costs, which is critical to meeting the growing demand for tokenized assets.

Features such as concurrent price feeds and a new signal hub will provide updated data sources for accurately expressing and trading tokenized assets. These upgrades are expected to help Band Protocol establish a dominant position in the space.

Additionally, Band Protocol has a strong track record in security with no leaks or exploits, which boosts user and investor confidence. Strategic upgrades and RWA tokenization could boost market cap as tokenized assets gain mainstream acceptance.

Technical setup signals bearish risk for the coin
Meanwhile, BAND price formed a technical pattern known as a “bearish bar.”

The bearish candlestick is a continuation pattern characterized by a period of converging price ranges following a significant downward price movement in a cryptocurrency. Typically, this pattern results in a downward price breakout, continuing the previous bearish trend.

Volume plays an important role in validating this pattern. During the consolidation phase, volume usually decreases, thus confirming the validity of the pattern.

When price finally breaks out of the candlestick, there should be a noticeable increase in volume. Traders can calculate a price target for the bearish candlestick by applying the height of the initial flagpole at the breakout point.

Therefore, if the BAND price confirms the pattern, it could drop to the projected price target of $0.953, a drop of more than 38% from the current levels.

However, the project’s recent bullish signals may help BAND price continue to rise, eventually invalidating this bearish pattern.