The $BANANA token has experienced a significant decline, falling 37% from its peak of $78.5 to the current price of $49.7.
Several factors have contributed to this drop.
1. Increased Market Supply: Following its listing on Binance, $BANANA airdropped 800,000 tokens to BNB holders. This influx of tokens has increased market supply, exerting downward pressure on the price.
2. Whale Activity and Liquidity Issues: Insufficient on-chain liquidity has prevented many whales from selling their holdings. The Binance listing, however, provided the necessary liquidity, enabling whales to cash out. This sell-off by large holders has further contributed to the price decline.
自从 $BANANA 上线Binance后，香蕉的tg中文群噪音变多了很多
发现很多人买之前不做研究，可能连Banana gun是什么都不知道，只在BN广场了解到香蕉枪的收入很高我本来想出个帖子对于群里的问题答疑，但是看了一圈，全是不是问题的问题
不过，可以给大家解答一下：为什么 $banana… pic.twitter.com/czMTyJhuRC
— 0x长安🦇🔊 (@0xchangan) July 31, 2024
Despite Price Drop, Some Top Wallets Continue Accumulating $BANANA
Despite the short-term bearish trend, some smart wallets are still accumulating $BANANA. Notably, wallet 0x30c7 has amassed 8.53K $BANANA (approximately $506.6K) in the past seven days without selling any, having previously profited $174.2K (+24.3%) from this token.
Additionally, 13 hours ago, wallet 0xda7b purchased 562.3 BANANA (around $30K), bringing its total holdings to $227.3K. This wallet has been trading $BANANA since its early days, realizing a profit of $91.5K (+30.4%) with an average buy price of $34.43.
These buy-back actions at the $60 (Net=$599K, 22/7) and $55 (Net=$365K, 28/7) price ranges suggest that some investors see value at lower prices. While the short-term outlook for $BANANA appears weak due to the increased supply and whale sell-offs, the activity of these smart wallets indicates a potential for recovery if market conditions improve.
$BANANA has fallen 37% from its peak: What now, guys? 🥶https://t.co/kFF8LDumzs will update you on the situation of Smart DEX Traders with the $BANANA Gun Bot. 🫶
There are signs of heavy selling (-$3.3M) in the $75-$78 peak range, but there are two "buy back" volume columns… pic.twitter.com/XaCriGA0xB
— iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) August 1, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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