Key Takeaways:
- A mysterious buyer started buying RPL tokens in multiple transactions.
- As a result, the Rocket Pool token price rose sharply on Sept 4.
- The token is moving inside a descending channel.
NEW DELHI (CoinChapter.com) — Ethereum staking protocol Rocket Pool’s native token RPL registered impressive price gains on Sept 4.
The uptick in RPL’s price came after a mysterious multi-sig wallet proceeded to buy 32,820 Rocket Pool tokens.
On-chain data provider Lookonchain highlighted the transaction series, noting that the wallet, marked ‘safe‘ on Debank, had spent 450 ETH (worth nearly $735,000) to purchase the RPL tokens. Interestingly, the wallet has only been active for three days.
RPL Token’s Bearish Trend Continues
The purchase might be an attempt to inflate RPL token prices by manipulating the market. As such, it might be possible that the wallet dumps the token after the Rocket Pool token’s price has risen sufficiently.
RPL price has been in a downtrend since June earlier this year. The Rocket Pool token entered a consolidation phase between April and June after reaching the token’s 2023 high of $65.16 on April 16 earlier this year.
However, the recent downtrend, which saw RPL price paint 14 consecutive red candles on the weekly timeframe, has resulted in the Rocket Pool token losing nearly all of its 2023 gains.
RPL Price Fails To Break Above Channel Resistance
Meanwhile, the RPL price rallied nearly 17.5% to a daily high of $25.8 on Sept 4, likely due to the buying pressure created by the mysterious wallet. However, the bearish pressure against the Rocket Pool token forced RPL to pare some of its gains.
The RPL token price has been moving inside a descending parallel channel since July 2023. The upper trendline resistance of the channel, combined with the token’s 20-day EMA (red wave), formed a resistance confluence that rebuffed the RPL price’s jump.
If the Rocket Pool token’s price breaks out of the parallel channel, the token might rally to the 50-day EMA (purple wave) resistance near $27. Breaking and consolidating above the immediate resistance could help RPL price target the 100-day EMA (blue wave) resistance near $31.7 before retreating.
On the other hand, failure to move above the channel resistance could force the RPL price to the support level near $21.5. Moreover, breaching the immediate resistance might result in the Rocket Pool token price dropping to the support near $18 before recovering.
The RSI for RPL remained neutral, with a score of 46.18 on the daily charts.
