Illuvium (ILV) Plunges Amid Whale Dumping
Illuvium (ILV) Plunges Amid Whale Dumping Last week, one of the large holders identified as a luggis.eth, withdrew 70,764 Illuvium (ILV) tokens. This whale withdrew ILV worth around $2.86 million. In the next 45 minutes, the whale dumped 40,000 ILV worth approximately $1.54 million into the market. The selling pressure seen in Illuvium led to a drop of roughly 7.8%. The whale’s actions have affected market price. It has also left investors worrying about the future volatility. However, out of the significant sale, luggis.eth still holds 221,046 ILV. This is worth about $8.25 million, so more market effects may be expected. The current case shows the dangers of whale trading in markets with less liquidity. Illuvium Price Decline and Market Reaction The value of Illuvium has not been spared in the last 24 hours, and the price plummeted as investors panicked following the whale’s sell-off. At the time of writing, ILV traded at $38.05, which is a 1.69% drop on the day. This decline has, however, been accompanied by a rise in trading volume, which rose by 120.24% to $19.82 million. The trading volumes increased, which points towards the elevated level of market stress and more selling pressure. This sudden market movement shows how the Illuvium price is very volatile, especially when there are large trades. As of now, there are 4.83 million ILVs in circulation, with a fully diluted market cap of approximately $322.58 million. This is because the circulating supply is significantly different than the holdings of a single whale, which shows that large holders can control market conditions. Market analysts are keenly interested in these events since the sell-off has affected the recent Illuvium trading pattern. Before the whale activity, ILV had been ranging within a relatively tight range and seemed to be building up steam. The recent price action suggests, though, that investors are becoming more cautious due to questions about whether there will be more big sales. This comes as whales are now preferably accumulating Render while others opt for Ethereum. Technical Analysis Highlights Further Downside Risks From a technical perspective, the current price of Illuvium shows fluctuations on the rise in the last few days. This is a result of both gains and losses in quick successions. The chart shows that Illuvium witnessed a steep drop. This is mainly after it went below certain crucial levels that were holding the prices of the digital asset relatively stable. This can be evidenced by the sharp price drop represented by large red candlesticks that indicate that sellers have been dominant in the latest trading periods. 30 min Illuvium/USD Chart | Source: TradingViewThe ADX indicator, which indicates the strength of a price trend, is at 32.02 at present. This level suggests strongly that there is a presence of a trend momentum, which also supports the bearish feelings in the market. The high ADX value means that the current bearish trend may remain longer if the whales keep on moving the market in the same direction. In addition, the technical metrics reveal that the support zones of Illuvium have been violated, which can result in further price drops. If the market cannot even sustain prior price levels, then it may be a sign that the market is set to move lower in the future if interest rate buying does not pick up in the near future.