Key Takeaways:
- Mask Network's token gained 33% of value in the previous 24 hours.
- However, a bearish setup threatens to drop the value to zero.
- The intraday rise was likely caused by a series of whale transactions, moving 3.6 million MASK away from exchanges.
YEREVAN (CoinChapter.com) – Mask Network’s same-name token jumped 33% in the previous 24 hours, reaching a local peak of $4.3 in the Asian-Pacific session on Mar 7. However, the wind changed hours later, and the MASK price settled at $3.8 in the European session, partially paring its intraday gains.
Furthermore, the token formed a ‘rising triangle’ pattern, which threatens to take MASK down to practically zero.
MASK price on its path to 0 after 33% jump
In detail, the setup entails a flat resistance line, connecting the swing highs and rising support that links the swing lows. The triangle also contained a relevant mid-range that capped MASK’s upside attempts along with the resistance bar at $5-5.4 (purple on the chart below).
As a result of the 33% intraday jump, MASK retested the said mid-range and might recede back to the support line, losing an additional 14% in the coming sessions.
Also read: MASK token price 25% down in a week – more loss ahead?
The token’s target price is near zero
Notably, the rising triangle is a continuation pattern. Meaning its occurrence within an uptrend or downtrend is significant. Once the breakout from the triangle occurs, traders tend to buy or sell the asset depending on which direction the price breaks out.
MASK lost over 95% of its price within 2022 before the rising triangle formed. Thus, a bearish continuation is in the books for MASK once the token breaks the support, pinning the target price at practically zero in Q2, 2023.
Meanwhile, the reason behind MASK’s 33% jump is noteworthy, especially considering the overall flat market.
MASK whale clears $14.8 million worth of tokens from exchanges.
A web3 data analysis tool, Lookonchain, noted a series of whale transactions that wiped a total of $14.8 million worth of MASK (3.6 million tokens) from several exchanges: Binance, OKX, Huobi, and KuCoin, providing snapshots to back their claim.
We analyzed the historical transfer-in and transfer-out of the address “0xEf7C”. And found that in many cases, transfer-in will lead to an increase in the price of $MASK, and transfer-out will cause the price of $MASK to drop.
added Lookonchain.
The platform also asserted that the address in question “withdrew 0.5 ETH from Upbit [exchange] as a gas fee”. Meanwhile, Upbit announced that it would open spot trading of MASK on March 7. Thus, the platform suspected that the whale transferred their MASK to Upbit to sell. If so, the price drop could support the bearish technicals.
Also read: Gold reaches $1,850 per oz on the back of dropping dollar index – new peak ahead?
Click here to keep up with the ever-changing crypto market and never miss the scoop!
