Despite a 28.2% correction, the Thoreum token remains up 139.8% over the past 30 days.
What Goes Up
The Thoreum token–THOREUM–has faced a sharp correction following a period of sustained growth, which saw it break into CoinMarketCap’s Most Visited sites at #3. The rally began on August 19th when the price of THOREUM was $0.02214684, before peaking five days later on August 23rd at $0.03078254.
But the highs don’t last forever. The token slumped to 0.02766113 on August 24th before rallying to 0.0300606 one day later, in what is termed a ‘double top’ formation. Since August 25th the token has undergone a significant correction of close to 30%. On Twitter and in Thoreum’s Telegram group, the project has sought to accentuate the positives.
“The last price correction was in Aug 10th, a whale sold off all his bag [sic] and price fall 40% to $0.012 after making an all time high of $0.02, then Thoreum come to a new ATH at $0.03, x 2.5 only 13 days later,” said Thoreum on their Twitter account on August 26th.
The token was unable to escape the volatility of a small-cap coin as well. According to a post in the Thoreum Telegram group, the latest price slump was also caused by a major sell-off from just one whale.
“One whale sold off all his Thoreum, in 3 minutes ~5,2 millions [sic] Thoreums worth 250 BNB was sold, you can check his wallet here,” explained Thoreum via their community management firm.
Double Top Pattern
A ‘double top’ pattern is often an indicator of bearish sentiment. With smaller cap tokens and especially with Decentralized Finance or meme tokens, it only takes the actions of one whale to switch the price action up or down.
“Rounding tops can often be an indicator for a bearish reversal as they often occur after an extended bullish rally. Double tops will have similar inferences. If a double top occurs, the second rounded top will usually be slightly below the first rounded tops peak indicating resistance and exhaustion,” Investopedia explains about double tops.
The sell-off on August 25th was likely precipitated by the previous major sell-off on August 23rd. Thoreum seems confident that the token can rally again and is encouraging users to ‘buy the dip.’ If enough users do so, Thoreum could again reverse its fortunes and climb once more.
However, as with other micro-cap tokens, it only takes another whale to sell off a large number of tokens for the price to crash again. That is the risk inherent in all micro-cap tokens and memecoins.
About Thoreum Finance
Built as a true hyper-deflationary token, Thoreum is the world’s first liquidity mining coin. It benefits holders by its static rewards of 2% tax fee automatically redistributed to holders. 8% tax fee automatically buy back & burn as Thoreum’s mechanism to protect Thoreum price. Together with the strategy of limited supply & strongly burned, Thoreum price is expected not to be reduced gradually as popular farms, but stable & go up steadily along with rarer of Thoreum tokens.
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Source : bsc.news
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