FTX collapse is Belief Pockets Token’s achieve — Why did TWT value soar 150% in six days?
Belief Pockets Token (TWT) is up practically 150% over the previous six days, bucking the slide within the crypto market, whose web capitalization has dropped by practically $100 billion over the identical interval.
TWT whale accumulation good points momentum
On November 15, TWT value reached a excessive of $2.43, a day after setting an all-time excessive at round $2.75. At its lowest in 2022, the coin was altering fingers for $0.40, making it top-of-the-line performing belongings of the yr with a year-to-date achieve of over 225%.
The belief pockets token’s uptrend gained momentum in November after the collapse of Sam Bankman-Fried’s FTX triggered a financial institution run, wherein merchants pulled their funds from exchanges.
For instance, the overall variety of bitcoin (BTC) in FTX’s pockets dropped to zero within the week ending November 13. Equally, the change’s Ether (ETH) reserves dropped from 611,000 to simply 2,800 throughout the identical interval.
Evidently mistrust in centralized exchanges has elevated the urge for food for self-custody wallets. Binance CEO Changpeng Zhao’s assist for the token’s guardian platform Belief Pockets has additionally performed a serious position in boosting the TWT value.
,@TrustWallet Your keys, your cash. https://t.co/pJUc26kQ7n
— CZ Binance (@cz_binance) November 13, 2022
Moreover, the Belief Pockets token provide price held by addresses with a steadiness of between 1,000 TWT and 10 million TWT tokens elevated in the course of the six-day value uptrend, suggesting whale accumulation.
In the meantime, the buying and selling quantity of the token has elevated from 279 million TWT to 593.25 TWT in the identical interval, demonstrating the agency perception in its upward motion available in the market.
TWT serves as a utility token for the Belief Pockets, wherein merchants can purchase, promote and gather NFTs, in addition to change and stake cryptocurrencies. Consequently, TWT sometimes operates as a centralized change token whereas Belief Pockets permits customers to regulate their very own funds.
Thus, it’s seemingly that Belief Pockets emerged as an off-ramp for merchants pulling their funds from cryptocurrency exchanges within the wake of the FTX fiasco, with the TWT value rallying in response.
‘Not your keys, not yours #crypto‘ has been echoing within the Twitter house for the previous few days.
Whereas many individuals use centralized exchanges, many customers have but to harness the ability of self-custody.
Begin taking management, right now https://t.co/h3pVVNzgpL
– Belief – Crypto Pockets (@TrustWallet) November 11, 2022
Depend on the “overbought” threat of pockets tokens
From a technical perspective, TWT dangers an enormous value correction within the coming days in the direction of the tip of the yr.
Not less than two indicators are pointing to this bearish outlook. First, the weekly Relative Energy Index (RSI) of TWT has turned “overbought” to its most since February 2021, suggesting a interval of additional value consolidation or a correction.
Second, TWT is exhibiting indicators of exhaustion to the upside after hitting a rising trendline resistance that halted the coin’s upward transfer in 2021.
Traditionally, pullbacks from the mentioned resistance line have pushed TWT in the direction of a multi-month rising trendline assist a number of occasions. In 2022, this rising stage coincides with one other horizontal assist line at $0.878, a 60% draw back from right now’s value ranges.
RELATED: Binance CEO urges crypto consumers to ‘maintain on’ amid ‘unpredictability’
On a brighter observe, TWT flipped a multi-month horizontal trendline resistance close to $1.535 to behave as assist throughout its ongoing value rally, which might assist restrict its bearish prospects. That mentioned, a decisive bounce off $1.535 might propel TWT value to a brand new all-time excessive in late 2022 or early 2023.
The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to do your individual analysis when making a call.