RAVE token recorded a sharp decline after large transfers linked to RaveDAO triggered heavy selling pressure across major exchanges. The sudden influx of tokens unsettled traders, as market participants reacted quickly to increased supply signals and concerns over potential liquidation from wallets associated with the project’s internal ecosystem.
The blockchain analytics firm Arkham noted that about 22.996 million RAVE tokens worth $24.31 million have been moved in a matter of hours. This was made up of 10 million tokens with a total value of $10.57 million and 12.996 million RAVE tokens worth $13.74 million.
These tokens have been transferred to the exchange Bitget, an event considered by traders as a sign of upcoming token sales. Inflows to exchanges usually indicate an increase in liquidation risks, circulating supply, and price downtrends, especially when dealing with less-liquid tokens that can easily be impacted by price movements.
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After the transfers, the token dropped by about 35% in less than 24 hours, as traders feared that more tokens would be distributed from the wallets linked to the treasury. Such a quick price drop shows that holding a considerable amount of tokens in one’s hand may result in market instability.
On-chain investigator ZachXBT intensified scrutiny by alleging coordinated market manipulation. He alleged that there are many addresses holding a substantial share of the token and linked to the early token distribution, causing bears to sell off.
RaveDAO refuted its involvement in the drop in prices, asserting that it had nothing to do with recent market trends. However, the developers did not provide any information with respect to the claims regarding the concentration of supply as well as wallet manipulation.
The major trading platforms acknowledged their review of recent trades. As for the future forecasts, the market experts believe that the price may stabilize within the range of $1.00 to $1.20. An increase above the level of $1.50 will demonstrate the end of selling pressure.
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