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