FTX collapse is Trust Wallet Token's gain — Why did TWT price soar 150% in six days?

1 year ago

Trust Wallet Token (TWT) has surged by astir 150% successful the past six days, bucking the downturn successful the cryptocurrency market, whose nett capitalization has crashed by astir $100 billion successful the aforesaid period.

TWT whale accumulation picks up momentum

TWT's terms reached an intraday precocious of $2.43 connected Nov. 15, a time aft establishing a grounds precocious astatine astir $2.75. At its lowest successful 2022, the token was changing hands for $0.40, which makes it 1 of the year's best-performing assets, with implicit 225% year-to-date gains.

The Trust Wallet Token's uptrend picked up momentum successful November pursuing the collapse of Sam Bankman-Fried's FTX, prompting a slope tally concern wherein traders withdrew their funds from exchanges en masse.

For instance, the full fig of Bitcoin (BTC) successful FTX's wallets dropped to zero successful the week ending Nov. 13. Similarly, the exchange's Ether (ETH) reserves fell from 611,000 to conscionable 2,800 successful the aforesaid period.

Distrust successful centralized exchanges seems to person boosted the appetite for self-custody wallets. Binance CEO Changpeng Zhao's endorsement of the token's genitor platform, Trust Wallet, has besides played a large portion successful driving up the TWT price.

.@TrustWallet your keys, your coins. https://t.co/pJUc26kQ7n

— CZ Binance (@cz_binance) November 13, 2022

Furthermore, the Trust Wallet Token proviso complaint held by addresses with a equilibrium betwixt 1,000 TWT and 10 cardinal TWT tokens surged during the six-day terms uptrend, suggesting whale accumulation.

Meanwhile, the token's trading measurement has soared from 279 cardinal TWT to 593.25 TWT successful the aforesaid period, showcasing market's condemnation successful its uptrend.

TWT serves arsenic a inferior token for Trust Wallet, wherein traders tin buy, sell, and cod NFTs, arsenic good arsenic speech and involvement cryptocurrencies. As a result, TWT typically operates arsenic a centralized speech token portion Trust Wallet enables users to power their ain funds.

Thus, it's apt that Trust Wallet emerged arsenic an off-ramp for traders pulling their funds from cryptocurrency exchanges successful the aftermath of the FTX fiasco, with TWT terms rallying successful response.

'Not your keys, not your #crypto' has been resonating astir the Twitter abstraction implicit these past fewer days.

While galore radical utilise centralised exchanges, a batch of users are yet to harness the powerfulness of aforesaid custody.

Start taking control, contiguous https://t.co/h3pVVNzgpL

— Trust - Crypto Wallet (@TrustWallet) November 11, 2022

Trust Wallet Token's "overbought" risks

From a method perspective, TWT risks a monolithic terms correction successful the days starring up to the year's end.

At slightest 2 indicators are hinting astatine this bearish outlook. First, TWT's play comparative spot scale (RSI) has go the astir "overbought" since February 2021, suggesting a play of terms consolidation oregon correction ahead.

Second, TWT shows signs of upside exhaustion aft hitting an ascending trendline absorption that capped the token's upside attempts successful 2021.

Historically, a pullback from the said absorption enactment has pushed TWT toward 1 multi-month ascending trendline enactment aggregate times. In 2022, this rising level coincides with different horizontal enactment enactment astatine $0.878, down 60% from today's terms levels.

On a brighter note, TWT has flipped a multi-month horizontal trendline absorption adjacent $1.535 arsenic enactment during its ongoing terms rally, which whitethorn assistance bounds its bearish prospects. That said, a decisive rebound from $1.535 could person TWT terms spell for a caller grounds precocious successful precocious 2022 oregon aboriginal 2023.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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