Trust Wallet Token (TWT) surged nearly 150% over the past six days, bucking the crypto market slump that saw net capital fall by nearly $100 billion over the same period.
TWT Whale Accumulation Gains Momentum
The price of TWT hit an intraday high of $2.43 on November 15, a day after hitting a record high near $2.75. At its 2022 low, the token is trading at $0.40 and has gained more than 225% year-to-date, making it one of the best performing assets of the year.
Trust Wallet Token’s uptrend gained momentum in November following the collapse of Sam Bankman-Fried’s FTX, triggering a bank run situation that saw traders withdrawing funds from exchanges en masse.
For example, the total number of Bitcoins (BTC) in FTX wallets dropped to zero in the week ending November 13th.
Distrust of centralized exchanges seems to be fueling the desire for self-custody wallets. Binance CEO Changpeng Zhao’s endorsement of the token’s parent platform, Trust Wallet, also played a major role in the rise in TWT price.
.@trust wallet Your key, your coin. https://t.co/pJUc26kQ7n
— CZ Binance (@cz_binance) November 13, 2022
Additionally, the supply rate of Trust Wallet tokens held by addresses with balances between 1,000 TWT and 10 million TWT tokens surged during the 6-day price uptrend, suggesting a whale stockpile.
Meanwhile, the trading volume of the token surged from 279 million TWT to 593.25 TWT over the same period, demonstrating the market’s confidence in the uptrend.
TWT will serve as a utility token for Trust Wallet, allowing traders to buy, sell and collect non-fungible tokens (NFTs), exchange cryptocurrencies and bet on them. As a result, TWT typically acts as a centralized exchange token, while Trust Wallet allows users to manage their funds.
As such, Trust Wallet emerged as an off-ramp for traders withdrawing funds from cryptocurrency exchanges following the FTX fiasco, and TWT prices may have risen accordingly.
“Not your key, not your key” #CryptIt’s been making waves in the Twitter space over the past few days.
While many people use centralized exchanges, many users are still not leveraging the power of self-custody.
Start taking control today https://t.co/h3pVVNzgpL
— Trust – Crypto Wallet (@TrustWallet) November 11, 2022
“Overbought” Risk of Trust Wallet Tokens
From a technical point of view, TWT is at risk of a significant price correction in the days leading up to the end of the year.
At least two indicators point to this bearish outlook. First, TWT’s Weekly Relative Strength Index (RSI) is the most ‘overbought’ since February 2021, suggesting a price correction or correction is coming.
Secondly, TWT is showing signs of upside exhaustion after reaching resistance at the uptrend line that has limited the token’s upward attempts in 2021.
Historically, pullbacks from the above resistance lines have pushed TWT towards single multi-month uptrend line support many times. In 2022, this ascending level will meet another horizontal support line at $0.878, a 60% decline from today’s price level.
RELATED: Binance CEO Urges Crypto Buyers to ‘Hold On’ Amid ‘Unpredictability’
On a brighter note, TWT has reversed multi-month horizontal trendline resistance near $1.535 as support during the ongoing price rally. That said, a decisive rally from $1.535 could push TWT price to new all-time highs in late 2022 or early 2023.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
