Recently, Tellor has experienced some significant price action after 2 whales moved 226,741 Tellor tokens to the OKX exchange. The token nears a breakout.
With this move accounting for 8.42% of TRB’s total supply, the market is closely watching. Recent price gyrations in the Tellor token market have raised concerns over potential price volatility.
The fluctuations have led to substantial Tellor token market movements, which happened over the past 12 hours. Two major investors, or whales, suddenly transferred in a combined 226,741 TRB tokens.
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The tokens were worth roughly $12.18 million, to the OKX exchange. With a total of 8.42% of TRB’s total supply in this deposit, this is a considerable percentage of the market that may influence trade dynamics.
Large deposits into exchanges are often a signal that a holder is preparing to sell the token. That caused the token price to drop.
The signs of this impact are already reflected in Tellor’s recent price chart, with a slight dip shown. Tellor is currently priced at $53.78, down 2.1% from the past period.
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Compared to other major cryptocurrencies, the token is down 1.9% in Bitcoin terms. It’s now worth 0.0007032 BTC per TRB.
It has seen a steeper decline against Ethereum, falling 5.0% to 0.01779 ETH. Tellor’s 24-hour trading range shows a low of $51.80 and a high of $56.02. This suggests some moving about but staying consistent within this range.
Tellor Market Outlook: Price Patterns Indicate a Breakout Soon
At the time of writing, Tellor’s price is within the confines of a descending wedge pattern. This pattern usually points to the potential for a breakout. The direction is just isn’t known.
The key support level is at $51.00. A break below that level might mean a possible downside target. It falls in line with a drop of 19.87% to $41.
If bullish momentum carries on, there’s a good chance Tellor will move up to the $65.00 resistance with a continuation target of $100.00. The target represents a 53.18% gain, which is a significant amount of upside potential if buying pressure continues to build.
TRB/USD daily chart | Source: Trading View
RSI currently stands at 42.22, a mildly oversold reading that could soon turn into a rebound if buying emerges.
However, it’s not that far from the overly oversold zone, so the downside still has legs. The MACD indicator too is in a bearish posture.
The lines below zero indicate weak momentum. The MACD line is below the signal line indicating weak momentum as well. A bullish crossover could be an early signal of a reversal.
Liquidation Map Shows $53.78 Breakout Could Trigger Major Liquidations
With the current price being $53.78, the Tellor Liquidation Map shows an important balance point for leveraged positions.
On the downside, long liquidations take effect. As they accelerate and the token price continues to drift below this point, liquidation risk reaches its peak at $45.85.
It’s for this reason that a sharp price drop could also lead to a wave of long liquidations. It would kick in some selling pressure that could push the price below even more.
On the contrary, short liquidations go up if the price goes beyond $53.78, especially past $54.50, where cumulative liquidation levels start climbing.
As a result, a price rally under this setup sets people to close their short positions. This acts as additional buying pressure and increases the chance of an upward spike.
Tellor Exchange Liquidation Heatmap | Source: Coinglass
The colored bars represent liquidation volumes on each exchange and show that OKX has the largest liquidation volume, followed by Binance and Bybit.
The focus on OKX in particular shows that the exchange is especially susceptible to liquidation risks, and the price movement could very easily lead to greater volatility.
If the $53.78 level is broken out above or below, it would produce fast, leveraged-induced moves in either direction, driven by cascading liquidations on one side of the market.
This imbalance of long and short pressures represents a highly leveraged market in which a sharp price move could easily be wiped out by a larger-than-expected reaction.
