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- Storj shot up by 16% in just one hour to stoke the interest of the crypto world, but the momentum has since slowed down even as investors anticipate bigger price movements in the future.
- The Filecoin rival has lost 7% in the past day to trade just above $1, but it’s still up by close to 40% in the past month as altcoins continue to make a splash in this bull cycle.
The altcoin season is in full swing, and as always happens, a few tokens make sudden market movements that get the attention of the entire market. The latest is Storj, which gained 16% in just over an hour on December 17, with investors keenly watching for any signs of future breaks.
Storj is currently trading at $1.02, losing 7.45% of its value over the past day for a market cap of $401 million, in line with a larger market correction. However, in that time, it spiked from $0.92 to $1.07 in a one-hour timeframe to catch the attention of investors. This momentum was short-lived, and the coin has been correcting since.
It’s not yet clear what was behind the sudden pump. However, in the crypto market, any one of various factors can give a token the tailwind it needs to ascend to new heights. Sometimes, it’s news of a new partnership with traditional firms, while in other cases, new developments and improvements in the protocol cause buzz around a project. In some cases, being mentioned by renowned figures has done wonders for a crypto’s price (remember Dogecoin’s SNL mania with Elon Musk?).
However, curiously, no major project or announcement appeared when the token shot up. The only peculiar thing about the rise was that two whale wallet addresses happened to move their holdings immediately after the 16% surge.
As noticed by the blockchain analytics platform Lookonchain, the two moved $23.7 million collectively from Binance and OKX exchanges. One address made two transactions—one involving the movement of 11.5 million tokens and the second involving 9.2 million tokens. The second address moved 2.2 million tokens and then 4.4 million Storj tokens.
The price of $STORJ surged 16% for a short period 1 hour ago.
After the surge, 2 wallets withdrew 23M $STORJ ($23.7M) from #Binance and #OKX, which may have something to do with the price surge.https://t.co/LK7m39P8Mdhttps://t.co/6VdEkBG8gO pic.twitter.com/67eiy3pNik
— Lookonchain (@lookonchain) December 17, 2023
According to one resource, the withdrawals could signal incoming dumps. It stated:
The withdrawal pattern implies large holders (whales) may be preparing to sell, often a precursor to a price correction. Traders should stay vigilant for a possible pullback as the market digests the implications of these outflows, adjusting positions accordingly.
What is Storj?
Storj is a decentralized cloud storage network framework that allows its users to store and share their data without needing a third-party service provider. It competes for the same market segment with Filecoin and Arweave, the former being the largest project in the field with a market cap of $2.4 billion.
By decentralizing cloud storage, Storh mitigates the risks of data failures and outages and boosts the security and privacy of this data at a time when data is becoming massively vital. Additionally, it offers its services at a cheaper rate than existing Web2 solutions.
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