Key Takeaways:
- Bancor (BNT) risks an 8% decline in the coming sessions.
- Droppin trading volumes and “overbought” RSI affirm the bearish expectations.
- A whale wallet (possibly Upbit) triggered the buying pressure.
YEREVAN (CoinChapter.com) – Bancor token BNT surged 55% in the previous 48 hours, trading at $0.6 on Oct 9. However, several technical and on-chain indicators point to a looming reversal.
BNT risks an 8% drop
In detail, the BNT/USD exchange rate retested the $0.62 resistance line, which has hindered the token’s bullish moves since August 2022. BNT briefly breached the said line in the Asian-Pacific hours on Oct 9 but lost altitude within minutes.
While crypto tracker CoinMarketCap shows BNT trading volumes have exploded over 2,200% in the previous 24 hours, they nearly halved compared to the previous day. Moreover, the 1-hour chart shows a further intraday decline since 01:00 GMT on Oct 9. The cooling trading volumes after the initial rally on Oct 8 back the price reversal expectations as market participants secure their gains.
Furthermore, the relative strength index (RSI) on the daily chart rose above the “normal” range of 30-70, indicating a profitable market exit point as the asset price is “overbought.”
If a bearish correction follows, the most likely short-term target will stand at $0.55, 8% lower than the current value.
Meanwhile, the reasons behind the initial surge are noteworthy.
Bancor Whale (possibly Upbit) triggered buying pressure
According to crypto data provider LookOnChain, a Bancor whale purchased over 4.7 million BNT tokens, or 3.3% of the circulating supply, worth $2.5 million within 11 hours on Oct 8. The platform further alleged that the wallet is “suspected to be Upbit,” a crypto exchange with a $1.1 billion daily trading volume.
Etherscan data backs the purchases but does not provide definitive information on whether the wallet belongs to Upbit.
Upbit or not, the whale triggered a surge in activity among BNT wallets. Another on-chain data provider, Santiment, detected nearly 800 active BNT addresses, the most in a single day in nearly two years. Also, 157 new Bancor token addresses have been created on Oct 8, most since Aug 9, 2023.
