- SKALE (SKL) surged 57% between Jan 24 and 29, driven by a rise in daily active addresses.
- Whale activity peaked on Jan 29, causing a 34-month high in large investor participation.
- After a minor pullback, SKALE’s future depends on ongoing whale activity and market trends.
SKALE (SKL), the 182 biggest market capitalization coin, increased its price by 57% between January 24 and 29. This remarkable price increase was mainly due to a sharp increase in the number of daily active addresses. The number of addresses saw the highest value at 840, a figure not attained since the coin’s creation.
Whale Activity Drives Price
This scaling activity came together with that of whales, which increased significantly during the analysis period, according to the analytical platform of Santiment. In particular, whales were active on January 29 when the number of large investors in the market reached a 34-month high. The following ideas were therefore seen to have especially contributed to the sharp increase in the price of SKL: Large traders were a particularly notable driver of SKLs price increase.
However, this also provoked profit-taking among these big whales regarding the supply of encouraging shares. Therefore, the token’s price faced some initial downward trend after the rally for SKALE. The short-term correction remains intact, and the platform believes the rally is not over. As of Press time, SKL is at $0.05671, down by 8.03% on the last day and up by 35.21% over the last week.
Source: TradingView
As for future perspectives, Santiment noted that further active on-chain will remain instrumental toward further price moves. Further gains are probable when both the whales and the retail investors are active in the market.
Related: Bitcoin Eyes February Surge After Strong January Performance
The platform also pointed at the possibility of another buying signal if, once again, on-chain events occur. This is an indication that whales may soon enter the market and probably cause an upsurge in prices. The next few days will show whether the current pullback is only a correction that may be followed by a further push up.
This increased price trajectory of SKALE indicates the upsurge in the interest that people are developing in its network. Due to increasing trends in participation by retail traders and institutional investors, the future of the asset is promising. However, the next few days will indicate if the price can continue moving up or if it is going to experience a pullback movement.
