Power Ledger (POWR) price is up 25% from last week, after spending the previous month hovering between $0.13 and $0.14. On-chain data suggests that retail investors are starting to ape in on the rally. But is it a bull trap?
POWR is the native token of Power Ledger, a technology company that builds software for “decentralized sustainable energy markets”. The POWR token grabbed investors’ attention after briefly hitting a 2023 peak of $0.23 on Thursday.
Whales Investors are Driving the Price Rally
The intense trading activity among the Power Ledger whale investors appears to be the critical driver behind the ongoing price rally. According to data compiled by IntoTheBlock, the whales have increased their trading activity since June 10.
As seen below, between June 10 to June 14, Power Ledger went from zero to 17 Large Transactions.
Large Transactions gauges the level of whale trading activity by aggregating the daily number of transactions that exceeded $100,000. Due to their influence and financial power, increased whale trading activity often triggers a bullish price trend.
But warily, as seen above, the last time Power Ledger attracted more than 1 Large transaction was June 27. And without any major product development or landmark community announcement to validate the renewed investor interest, the ongoing price rally could evolve into a bull trap.
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Retail Investors are Buying Into the Power Ledger Price Rally
Furthermore, on-chain data reveals that retail investors, too, have begun to ape into the ongoing POWR price rally. According to Santiment, the number of Daily Active Addresses on the Power Ledger network has risen significantly this week.
The chart below illustrates that prior to the price spike, Power Ledger only attracted 43 active addresses on July 9. But by the close of July 13, that figure had spiked by 800% to hit 387 active users.
Daily Active Addresses tracks the number of individual wallet addresses interacting on a blockchain network. This provides an estimate of the level of activity among retail market participants.
The chart above shows how POWR price rally FOMO (Fear of Missing Out) has attracted retail investors to the Power Ledger network in the last few days.
POWR Price Prediction: One Last Push Before Retracing to $0.10
In summary, the growing momentum among retail investors could push POWR price into another price pump in the coming days.
But without a landmark ecosystem event to validate the whales’ renewed interest, POWR could suffer a massive retracement once the market approaches a euphoric high.
However, IntoTheBlock’s GIOM data suggests that the bulls could mount a support buy-wall around $0.15. At that zone, 3,120 investors had bought 251 million POWR tokens at a minimum price of $0.15. If they chose to hold firm, they could trigger a rebound.
However, if the bull-trap narrative holds true, the Power Ledger price will drop to $0.10.
Conversely, if a community event spurs a renewed bullish momentum, POWR could head toward $0.30. However, the sell-wall at $0.25 could pose a challenge.
As seen above, 4,080 investors had bought 39 million POWR tokens at an average price of $0.26. Once they break even, they could exit the market.
Although unlikely, if that resistance level cannot hold, then POWR could rally toward $0.30.
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