NKN price prediction: Strong fundamentals, dull market performance

The New Kind of Network (NKN) has an immense community behind it. Why isn’t the token taking off?

NKN logo against blue code – Photo: Shutterstock                                 
NKN boasts one of the world’s largest network of node validators. Photo: Shutterstock
                                

Contents

What does NKN power?

NKN is the native cryptocurrency of the wider NKN – or New Kind of Network – blockchain protocol, the Chinese-based operation which is one of the largest in the world by node count.

NKN’s protocol, based on cellular automata (CA) mathematics, allows the sale of usable bandwidth across the world, which NKN passes on to its business partners. Any individual with bandwidth they are not using can sell it, via NKN, to people seeking as much bandwidth as possible. The nodes that supply the bandwidth are rewarded through a Proof-of-Work (PoW) mechanism, not dissimilar to Bitcoin, despite the rewards being considerably lower.

At its core, NKN is a content delivery network (CDN), which is far from a new concept. Any major Web 2.0 application, whether that is Facebook or Netflix, employs a CDN in order to meet customer demand.

Where NKN diverges is in its decentralised, trustless design, which is at the heart of blockchain philosophy.

There is a tonne of fascinating things going on under NKN’s hood, which you can check out in our ultimate guide

NKN: A few key figures

In terms of allocation, 35% of NKN tokens are reserved for purchasers on the markets, 18% is distributed to founders and developers and 17% is reserved for strategic investment in the project.

NKN uses a mining system to verify block transactions, where 30% of all NKN coins are reserved for mining rewards, with the amount decreasing per year as a deflationary measure.

NKN performed an initial coin offering (ICO) on 19 April 2018, reaching its $12.6m total hard cap. The coin was priced at $0.13 at the ICO, and the return on investment (ROI) at the current price for initial token holders in 3.76x.

At the time of writing, the NKN cryptocurrency is valued at $0.4927. The circulating supply is 700 million, against a maximum supply of one billion, making for a market capitalisation of $344.9m. NKN is ranked number 184 on the market cap table, with a market dominance of 0.01%.

Trading volume is fairly meagre, currently at 0.058% against market cap. 

What does the chart tell us?

NKN enjoyed an unprecedented bull run in early April as the wider cryptocurrency market went into overdrive.

The spike capped out at $1.489 on 09 April, up almost 90 times year-on-year.

Of course, these figures were very short-lived and the market went into a correction as NKN was dragged down below the $0.30 line.

An ascending channel was formed by three bull runs starting on 7 August, which were resisted in turn. The extremely long wick on 16 October’s inverted hammer cut short another 40% bull run in the week prior.

In early November, we once again saw an ascending channel formation before the downtrend that we are currently experiencing.

Since NKN is downtrending, it is worth keeping the nearest support line in mind. We can infer from the 5 November golden cross that $0.46 is the support line to watch out for. If that holds, then a bullish reversal could be due in a day or two. Lacklustre trading volume would need to be reversed to make this happen.

The moving average convergence divergence (MACD) metric does not present great news, suggesting a continual downtrend in the short term; a convergence in the next few day’s trade is unlikely. NKN is trading below both moving averages, also a negative sign.

The relative strength index (RSI) is at 44.45, having remained near the level for the latter half of November, indicating that NKN is neither overbought or undersold. A higher-low pattern is not evident, which could be a negative sign.

A definitive picture cannot be made of the NKN coin price prediction; numerous metrics present a lacklustre performance. But NKN could be spurred on by some decent fundamentals to excite the New Kind of Network community. which could rejuvenate NKN crypto predictions.

What the forecasters say

The online forecaster Wallet Investor presents an NKN price prediction for 2022 of $0.938. An ROI below the 50% mark is underwhelming against competing altcoins.

The forecaster has a price target of $2.518 over the five-year period, again quite sluggish. Consequently, sentiment is largely bearish.

The forecasters at Digitalcoin have an NKN price prediction for 2025 of $1.49; an ROI of three times current price is lacklustre compared to other altcoin offerings. While no NKN price prediction for 2030 is provided, the price is expected to top $2.28 in 2028.

Digitalcoin suggests a sell strategy in its NKN price prediction coverage.

All in all, NKN is not performing amazingly, with forecasters’ general NKN price prediction expecting modest returns and mixed signals coming from the chart.

However, there is no denying the quality of NKN’s fundamentals. Its services are robust and a massive community of miners keeps the network secure. If NKN can bring some news to the table to excite investors, it is possible that we will see better token performance in the months to come.

FAQs

Forecasters are not overly hyped about NKN’s long-term prospects, and chart performance is not amazing. That said, be sure to research the innovative fundamentals and make an assessment. Whatever you decide to do, make sure to never invest more than you can afford to lose.

NKN could go up, if only to a moderate degree. Given the volatility of crypto assets, there is no guarantee; please keep that in mind should you choose to invest.

That is totally up to you! Recent performance and forecaster predictions are not amazing, despite solid fundamentals and an exciting underlying product. Make sure to conduct extensive due diligence if you intend to invest.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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