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We experienced one of the impressive rises reminiscent of the bull season on the last day of the year. However, it reminded us of something again. That was the fact that there is no constant rise. No one was expecting TRB Coin to suddenly exceed $600 as it rose speculatively. But it managed to do so and then saw a strong pullback.
TRB Coin Commentary
The price increased more than 60 times in about 140 days. Initially, the price, which rapidly rose from the $7-10 range to over $600, was benefiting from the excitement in the RWA area. Then, at the end of December, traders chasing speculative gains with a high appetite for risk pushed it even higher. Now it has fallen below $200 after losing the $235 support we mentioned over the weekend.
If it starts closing below $179, the decline could continue towards $123 and $105. The long tail in today’s candle indicates that buyers are stepping in at lower levels. Tellor (TRB) Coin, with a market value of $491 million, is the 108th largest cryptocurrency, and surpassing $600 with a tiered rise was not impossible.
If it does interesting work in the RWA field, it may see these levels again in the long term, but the trading volume of up to $2.5 billion in the last 24 hours shows that it has turned into a hand grenade for now. Investors should be cautious as rapid declines can be triggered by investors who were able to buy at very low levels.
Why Did TRB Coin Fall?
On-chain analysis company Lookonchain announced via Twitter that the Tellor team deposited 4,211 TRB Coins worth $2.4 million to Coinbase. TRB Coin was about to reach its peak of over $600 at that time. The price fell by 70 percent in a very short time as the news spread in waves. The outcome of just $2.4 million worth of tokens being deposited on the Coinbase exchange was interesting.
The only explanation for the fall of the altcoin, which sees over $2 billion in volume daily, due to the news of a $2.4 million transfer, could be the abnormal interest of a large rookie investor crowd that is skittish, chasing speculative gains, and trying to push the price up with a survival-of-the-fittest mentality. Yes, the price was rising nonsensically and also fell nonsensically.
What investors should really fear is not so much the $2.4 million transfer but the 14 whale wallets that control 76% of the token supply. High whale interest can lead to painful outcomes in terms of pump/dump scenarios, and what happened to TRB Coin recently was somewhat like that. It would not be surprising to see a similar movement in the next few months.
