Telegram coin PAAL AI (PAAL) is suffering just like the other altcoins; however, the reason behind it is different.
Unlike the broader market’s correction, PAAL’s drawdown resulted from selling from a key investor cohort.
PAAL AI Investors Are Not HODLing
PAAL price took a hit due to the selling of one of the most important groups of investors—the long-term holders. These investors are known for being the backbone of an asset’s price stability, as they tend to hold even through bear markets.
But the moment they make a move, the price’s stability falters, and the market declines. Such is the case with PAAL as well.
Heavy selling was noted over the weekend, as visible on the realized profits chart. This is the largest bout of profit booking noted in more than four months.
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The last time this happened was in April, right after PAAL’s price crashed 23% in four days. This time, however, the profit-taking was not due to fear but elation.
The Telegram coin registered a 21% rise towards the end of the previous week, which led to the selling. This was the work of long-term holders, as evident in the spike in age-consumed metric.
The “age consumed” metric measures the total amount of time that coins have been dormant before being spent. It helps gauge transaction activity and the movement of older coins in the blockchain.
Spikes show movement between addresses, which was the case this time. This was the largest move by long-term holders in nearly five months. Thus, as these key investors sold, the price tumbled and ended trading at $0.208.
PAAL Price Prediction: Moving On
PAAL price is currently above the support level at $0.203 despite the 8% drawdown in the last 24 hours. The Telegram coin aims to bounce back and reclaim $0.255 as a support level.
Doing so will enable the PAAL’s price to run up to $0.312, flip it into support, and rally on. Once the Telegram coin breaches or even tests the resistance level at $0.415, the losses from the last two months will be recovered.
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However, if the bearish cues weigh heavily on the price action, the altcoin could dip below $0.203. This would push PAAL AI to $0.103, invalidating the bullish thesis.
Disclaimer
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