The cryptocurrency market is abuzz as Mask Network (MASK) experiences dramatic price movements. Recently, the token surged to an impressive high of $3.6766—the highest point since December of the previous year. However, this surge was short-lived, and the price quickly reversed, dipping towards $2. This price fluctuation has captured the attention of investors and analysts alike.
On-chain data has revealed significant activity among larger investors, commonly referred to as whales. Notably, the whale transaction count surged to 26, marking its peak since May 28. This uptick in trading activity suggests that large investors are capitalizing on the recent price spike to secure profits. As a result, the total supply held by whales has plummeted to 28.26 million, a record low.
Furthermore, an analysis of the Mean Dollar Invested Age (MDIA) indicates bearish sentiment surrounding MASK. This metric, which examines the average age of all coins weighted by their purchase price, has been in a downward trajectory. The MDIA figure for the past 180 days dropped to 29.6, down from 50 in May, while the 365-day figure plunged to 38 from 70. Falling MDIA figures typically signal waning investor confidence, raising concerns about Mask Network’s future price stability.
Adding to the bearish outlook, the funding rate for Mask Network has turned negative in recent days. This phenomenon occurs when a larger number of traders are shorting the asset, resulting in those traders paying a fee to the fewer bullish traders. A negative funding rate often reflects a lack of confidence among market participants.
Looking at technical analysis, the MASK price chart reveals significant retraction from its recent highs. After reaching a peak of $3.7020, it fell sharply to $2.3300, breaching crucial support levels. The Relative Strength Index (RSI) has also tilted downward, dropping from a high of 80 to 54. Analysts predict that if this bearish momentum continues, MASK may further decline, potentially hitting a low of $0.9475, a level not seen since April.
In conclusion, while Mask Network briefly enjoyed a price surge, the subsequent sell-off among whales indicates the possibility of an extended downtrend. Investors are advised to proceed with caution as technical and on-chain indicators suggest a bumpy road ahead for MASK.
