KyberNetwork (KNC) Saw Unusual Spike in Whales' Accumulation, What's Happening?
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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.
🐳 #KyberNetwork whales have accumulated rapidly over the past three months, with key wallets holding 1m to 10m $KNC adding 20% of the supply to their holdings since July 31st. The last time this kind of accumulation was seen, $KNC grew +67% in 6 months. https://t.co/3P4j7fjHqo pic.twitter.com/q1XUDIRMVr
— Santiment (@santimentfeed) October 24, 2022
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.
Alex DovbnyaThe 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.
Related articles
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team