ConstitutionDAO Experiences Impressive Rally Amidst Potential Whale Manipulation
ConstitutionDAO (PEOPLE) has seen a significant surge in value, reaching its highest point since February 2022. However, there are indications that whales may have played a role in manipulating the asset.
Rallying Price and Market Cap
Over the past 24 hours, PEOPLE has rallied by 120% and is currently trading at $0.029. Its market cap has also increased to $146 million, making it the 295th-largest digital currency. This surge in value has led to speculation that whale activity may be driving the price movement.
Data on Whale Activity
Data provided by Santiment reveals that ConstitutionDAO’s daily trading volume has skyrocketed by 13,750%, reaching $1.35 billion. The amount of PEOPLE tokens flowing into exchanges has risen from approximately $300,000 to about $184 million, while tokens being withdrawn from exchanges have surged from $4.6 million to $203 million within just 24 hours.
This data indicates a net outflow of roughly $19 million worth of ConstitutionDAO coins from exchanges to self-custodial wallets.
Whale Transactions and Control
Santiment data also shows that whales have executed 34 transactions involving at least $100,000 worth of PEOPLE tokens for the first time in over a year. It is common for an asset’s volatility to increase when whale activity suddenly surges.
Furthermore, there are five whales holding between 100 million and 1 billion PEOPLE coins who currently control more than 50% of the total supply. Additionally, there are 20 whales holding between 10 million and 100 million coins.
Potential Whale Manipulation
The recent movements have caused ConstitutionDAO’s Relative Strength Index (RSI) to rise from 55 to 81 within the past 24 hours. This suggests that the asset may be overheated and susceptible to potential whale manipulation.
In order for the PEOPLE token to maintain its bullish momentum, its RSI would need to cool down and drop below the 60 mark.
About ConstitutionDAO
ConstitutionDAO is a decentralized autonomous organization (DAO) that was established in November 2021. It raised over $42 million with the goal of purchasing an original physical copy of the United States Constitution.
Hot Take: Whales Influence ConstitutionDAO’s Rally, Raising Concerns of Manipulation
ConstitutionDAO’s recent impressive rally has been accompanied by a surge in whale activity, leading to speculation about potential manipulation of the asset. With significant increases in trading volume, inflow and outflow of tokens, and the concentration of supply among a small number of whales, there are concerns about the sustainability and fairness of the price movement. The rising Relative Strength Index (RSI) further suggests overheating and possible manipulation. As ConstitutionDAO aims to establish itself as a prominent decentralized autonomous organization, it will need to address these concerns and ensure transparent market dynamics to maintain investor confidence.
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