MBAex Digital Pass (MDP) has been successfully launched on June 29 and as expected, saw a decent interest from MBAex’s traders and partners.
MDP/USDT advanced to $6.97 a unit on the back of a sustained demand on July 6, significantly higher than its launching price of $0.16.
Trading volumes rose to $200-300 million on daily basis and the positive trend is here to stay with advantages that MDP offers its users on numerous corporate services, such as discounts on transactions, business advertising fees and VIP user services.
It is of course important to mention that the MBAex platform is now free-of-charge, but this is going to change in the near future. The exchange will soon charge commencement fees in terms of MDP. The latter modification will inevitably have a positive impact on the MDP demand, hence its value.
And we remind that the amount of MDP is not infinite. The initial amount in circulation is 660 million units. Hence, first MDP holders will certainly be the ones that would benefit the best from the expected price appreciation. Once used, the tokens will be purged and considered a member fee. Therefore, MDP’s price is expected to have a sustained mechanical support over time as well, as tokens become rare.
In addition, MDP tokens also benefit from a stable demand from medium to long-term investors, as MBAex is building a Consortium Blockchain Ecosystem, where MDP will then become the coin of its own environment.
Hence, it is safe to say that the initial MDP rush is justified by solid fundamentals, although the rapid rise in prices led to an increased volatility during the first weeks of trading.
MDP’s rapid surge sent the market to highly overbought territories. The overbought market conditions then encouraged a downside correction, which has shortly pulled the price of MDP below the $4 level, offering a window of opportunity for buyers looking to benefit from a positive retracement.
MDP/USDT is currently testing the $5-resistance, the major 38.2% retracement on past week’s downside correction. Clearing this resistance should encourage a further rise to $5.4 and $5.7 (major 50% and 61.8% retracement) before a renewed attempt to the $7 level and above.
The price is expected to advance toward the $10 mark in the continuation of the positive mid-term trend.