Ethereum, the second-largest cryptocurrency, recently experienced one of its most decisive crashes from late July to early August. Along with a broader market correction, the selling pressure is likely attributed to Jump Trading dumping more than $300M worth of ETH. Following this liquidation, Ether price plunged to a low of $2,112 on August 5th.
While the proprietary trading firm has not released any official statements about these trades, several rumors stated the move was either their exit from the crypto market or reducing their risky bets amid volatile market sentiment. However, one interesting observation is that the trading firm still holds millions of Threshold (T), a lesser-known altcoin, with no notable movement so far.
Will Jump Trading Dump More Crypto?
Jump Trading recently caught the attention of crypto investors after dumping more than $300 million in staked Ethereum (stETH). The firm’s en masse liquidation of their holdings coincided closely with the crash in stock markets across the world on the back of recession fears. While it is unclear, some speculate that Trading firm could be exiting the crypto market amid a Commodity Futures Trading Commission (CFTC) investigation on the firm’s ex-President Kanav Kariya.
Based on-chain data, Jump Trading’s address now holds more than 70% of stablecoins: $66.75 million in WSTETH (Wrapped Staked ETH), $9.52 million in RETH (Rocket Pool ETH), $19.38 million in Ethereum (ETH), and 90.284 in Threshold (T).
Threshold is the only altcoin that Jump Trading holds, and it’s interesting to see if they keep it or dump it.
Threshold Price Rebounds, But Supply Pressure Looms
Threshold price has been ranging since June 2022, above the critical support of $0.025. This horizontal level has remained a favorable accumulation point for investors, evidenced by some major reversals in the daily chart.
Amid the recent market recovery, the T price bounced from $0.014 to $0.023, registering a 58.6% growth. A sharp upswing from the Relative Strength index to 53% supports the rise in demand pressure at bottom support. Hence, a flip of the $0.0278 resistance into a support floor could allow T bulls to trigger an 86% rally to the next hurdle at $0.0425
However, a long-tail rejection candle of August 11 hints that T Price witnessed intense selling pressure at $0.027 resistance. If Jump Trading decides to offload its $2.1 million T holdings, it could add to the bearish momentum and knock Threshold price down by 37% to $0.0146, which has maintained support since December 2022.
The post After Dumping $300M in Ethereum, Jump Trading Could Sell This Crypto Next appeared first on CoinGape.
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