In an unprecedented move, the price of SPACE ID (ID) jumped to $0.55 on February 9 after the trading price started the same day around $0.25. According to CoinMarketCap, this jump was more than a 100% increase within 24 hours.
The price increase was also followed by a 3,090% climb in trading volume, suggesting that interest in the cryptocurrency soared. But at press time, ID’s price was trading at $0.49, indicating that participants had started to book profits.
It’s Take and Grab Season
In the meantime, Coin Editon observed reasons for the pump and dump on Spot On Chain, an on-chain data analysis platform. According to the on-chain data platform, ID’s price jumped due to the token listing on Upbit.
Upbit is an exchange based in South Korea. As such, it implied that most of the volume of the cryptocurrency came from the Asian region. Furthermore, SpotOnChain noted that market maker DWF Labs was one of the major buyers of ID especially as it withdrew $1.73 million worth of the token from OKX.
$ID price has surged ~87% after #Upbit announced to list the token!
Our system detected that DWF Labs (@DWFLabs) withdrew 3.62M $ID ($1.73M) from #OKX in the past 3 hours, and then quickly deposited 2.45M $ID ($1.12M) to #Binance via #AmberGroup.
In the past, both DWF Labs and… pic.twitter.com/nCdT6sJIZg
— Spot On Chain (@spotonchain) February 7, 2024
However, the post above also noted that DWF Labs was also involved in the dump, the same way it influenced the pump. This was because the market maker sent 2.45 million ID to Binance in a bid to sell after the price increased significantly.
ID Positioned to Keep Falling
From a technical point of view, the Bollinger Bands (BB) showed high volatility around the cryptocurrency. This implies that notable fluctuations could still happen regardless of the little sidemovements between $0.46 and 0.49
If buying pressure increases, ID might rise higher than $0.55. But a highly bearish scenario could take the token price as low as $0.26. Furthermore, the upper band of the BB had touched ID’s price at $0.49, indicating the token was overbought.
Signals from the RSI on the 4-hour ID/USDT chart also suggested the same. At press time, the RSI was 88.81. If sellers continue to book profits, ID might fall to the first resistance which was around $0.35.
ID/USDT 4-Hour Chart (Source: TradingView)
If bulls ramp up volume at this point, the price might recover to $0.45. However, failure to turn the resistance into support could see ID drop to $0.29 which was the next point of interest. As of press time, ID’s price looks set for another decrease.
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