The recent surge in large transactions involving the cryptocurrency SUNDOG has grabbed the attention of market observers, as two significant purchases have sparked speculation about the token’s future.
A single whale splurged $2 million to acquire a substantial amount of SUNDOG in one transaction, followed by another investor who bought $500,000 worth, equivalent to 1.16 million tokens.
These sizable acquisitions may indicate a growing confidence in SUNDOG’s potential. Delving deeper into market sentiment, technical signals, and blockchain data will shed light on whether this upward trend is sustainable.
Do Whale Acquisitions Signal Strong Confidence in SUNDOG’s Future?
The sudden accumulation of SUNDOG tokens by big investors suggests a strengthening belief in the token’s upward movement. Currently trading at $0.3597, the price has seen a 5.01% increase over the last 24 hours.
This surge coincides with the significant purchases, hinting that whales are strategically positioning themselves ahead of a potential price surge.
The Bollinger Bands illustrate heightened volatility, with the price testing the upper boundary at $0.37146, indicating a possible continuation of bullish momentum. The lower boundary at $0.33825 acts as a crucial support level.
Meanwhile, the Relative Strength Index (RSI) sits at 58.54, slightly below the overbought threshold, implying room for further upward movement before reaching overbought conditions.
What Impact Does Blockchain Data Have on SUNDOG’s Rally?
On-chain data metrics offer additional insights into SUNDOG’s recent surge. The open interest (OI)-weighted funding rate is at 0.0101%, reflecting a positive sentiment as traders are willing to pay a premium to hold onto long positions.
Furthermore, data on total liquidations shows that $90.8K in short positions were liquidated, indicating that bearish traders are under pressure as the price continues its upward trajectory.
In contrast, only $927.57 of long positions have been liquidated, further reinforcing the bullish sentiment propelling SUNDOG’s current uptrend.
Is SUNDOG’s Price Rally Sustainable?
The recent price movements of SUNDOG and the accumulation by large investors suggest that the token could maintain its bullish trend in the short run. However, investors should keep an eye on the RSI as it nears overbought levels and monitor potential volatility in the Bollinger Bands.
While whale acquisitions signal a long-term confidence, how the market reacts to sudden shifts in whale activity will be crucial in determining the sustainability of the rally.
Overall, the outlook remains positive at present, but traders should exercise caution and remain alert for any sudden shifts in the market.