Whale exit may reduce future selling pressure, while new projects like PEPENODE gain attention.
A major PUMP holder closed a three-month position at a substantial loss, according to on-chain data from OnchainLens and Nansen. The wallet deposited 3.8 billion PUMP, worth $7.3 million, into FalconX on December 23.
The same tokens were initially withdrawn from Binance at a value of $19.53 million, resulting in a realized loss of $12.22 million. According to blockchain records, this transfer is more of a full exit of the position as opposed to a partial sale.
After the whale exited, PUMP was trading at approximately $0.00167-0.00175, which is slightly below a long-term support band. The token has been trading within a downward trending channel over the past weeks with lower highs and no selling pressure.
The technical indicators show that the market is still bearish, the RSI is below the midline and the MACD is negative which means that the sellers still prevail.
However, it has been observed that a whale exit causes short-term selling pressure, but it also eliminates a large overhead seller, which might eventually lessen any future resistance related to supply.
In case if the support of the $0.0017 level breaks, PUMP might be retracted to the zone of $0.0015-0.0014 where the next demand area lies. Conversely, holding above $0.0027 would mark the first major bullish shift, with resistance level near $0.0045.
An extended recovery above the channel midline would ultimately aim at the $0.02 zone, but this would be achieved after breaking several resistance levels and a lot of volume verification.
PUMP has been volatile over the last few months, in line with the overall trends in low-cap altcoins. Smaller holders sold into local highs earlier in November, as well, which helped to cause temporary price dips.
Such massive movements of whales, according to analysts, tend to predetermine short-term price action and can affect the mood of retail traders.
The loss of $12 million by one whale highlights the dangers of volatile and low-cap cryptocurrencies. Whale exits may affect short-term market action and market mood.
To investors, whale movements combined with technical levels may give an idea of possible support and resistance levels, and navigate high-risk altcoin markets.
