October 5, 2023 at 13:20 GMTModified date: October 5, 2023 at 13:20 GMT
October 5, 2023 at 13:20 GMT

Trust Wallet Token up 15%, in spite of low active wallets

With a price hike by about 15% in the past 24 hours, $TWT is token of the day so far…

Trust Wallet Token up 15%, in spite of low active wallets

Trust Wallet Token ($TWT) seemed to be on its way to breach above the $1 mark as it remained bullish in momentum today. The token has risen by almost 15% in the last 24 hours and over 23% in the last seven days.

This made $TWT the day’s top gainer among the top 100 cryptocurrencies. It was changing hands for $0.9356 with a total market cap of roughly $389m at the time of writing, according to CoinMarketCap.

Founded by Viktor Radchenko in 2017, Trust Wallet is a decentralised, open-source, and non-custodial multi-cryptocurrency wallet. In 2018, it was included in the Binance ecosystem as the official cryptocurrency wallet.

$TWT is the native governance token of this ecosystem, allowing holders to participate in key decisions affecting the wallet’s ecosystem. In addition to governance, $TWT holders can also benefit from discounts when purchasing crypto within the app and using the token to pay for its development.

On 4 October, the token’s price broke out from a 130-day descending resistance trendline, climbing to $0.97 before falling slightly to the current level. However, the positive momentum seems to continue for the coin.

Despite this, its price-daily active addresses (DAA) divergence told a different story. While the ongoing rally pushed the average daily trading volume of the last day by 1,250%, it was noted by market intelligence platform Santiment that there have been no whale transactions with over $100,000 worth of $TWT since 29 August.

This hinted at the possibility of holders not moving the assets into self-custody which could further indicate high volatility for the token.

On top of this, $TWT’s active wallets have been at their lowest since 22 August too. This meant that investors have been buying the token on exchanges and storing until a favourable price level is reached. Its trading volume is directly from exchanges too.

The price DAA divergence, which relates to the token’s price and the number of active addresses, dropped to negative 109%. According to Santiment, this indicated a strong sell signal.

On the flip side, $TWT’s social volume went up 180% in the last two days. Santiment defines social volume as the total number of text documents that contain the given search term at least once, built on top of social data.

While several analysts projected a bullish price prediction for the coin, a decrease below its 12 September high of $0.83 could mean the opposite. If this becomes the case, a retracement to the $0.72 area, which would be a 20% decrease, would become a potential future outlook.

However, despite this, $TWT’s current momentum, on the back of the breakout from its prolonged resistance trendline, excited investors. Bulls dominated several top tokens at the time of press too as the broader cryptocurrency market saw a positive shift in the last 24 hours.

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