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KyberNetwork (KNC) Saw Unusual Spike in Whales' Accumulation, What's Happening?

Tue, 10/25/2022 - 10:23
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Arman Shirinyan
KNC severe downtrend attracted whales and sharks that accumulate asset heavily
KyberNetwork (KNC) Saw Unusual Spike in Whales' Accumulation, What's Happening?
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Contents

KyberNetwork's number of whale transactions is on a strong rise as key wallets that hold from 1 million to 10 million KNC added 20% of the supply to their holdings since July 31. The unexpected accumulation is not something unseen for the network: the last time it happened, KNC saw almost a 70% increase in six months.

Whales' behavior

Whales tend to accumulate heavily during dips in the market or low volatility periods, which can be applied to the state of KNC. In the last 12 days, KNC has shown almost nonexistent volatility, making accumulation a tempting activity.

Prior to entering the low volatility rangebound, KNC has suddenly started to move down while being on a steady uptrend for more than two months. The fading volume profile during the uptrend showed that it had little or no support from whales or large investors, which is why the drop was so severe and unexpected.

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The accumulation we are seeing now can be considered a positive sign for the network, as it should act as a foundation for a recovery rally that should start at some point. However, the large percentage of the supply in the hands of whales only has a temporary positive effect that will turn into selling pressure when the rally accelerates.

KNC technical analysis

Unfortunately for long-term KNC holders, the asset has shown almost no profitability for those who purchased it after 2019. The price level we are seeing now corresponds to the level traders exchanged with KNC back in October 2020.

At press time, KNC is trading at $0.84 with a 0.49% price increase in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.