Santiment tweeted that the $BAL token formed a wall of worry starting mid-March. The prices of $BAL appear to increase despite some negative issues surrounding the token. Since mid-March, the bullish trend shown by crypto could be the main factor driving $BAL prices high.
Midsized Holders Stopped Activities After March 12
The Santiment report indicates that mid-sized holders of the Balancer token increased their holdings vastly just before a breakout, which occurred around March 12. Santiment focuses on keeping blockchain analytics data for the benefit of investors.
The Santiment tweet posted yesterday says that “# Balancer’s small to mid-sized traders, holding 10 to 1,000 $BAL, increased their bags in a major way their balances before the bottom around March 12, just before the +90% breakout ever since. Now we’re noticing a wall of worry.”
Small and mid-sized holders, in this case, are the ones holding between 10 and 1000$BAL. Before the prices reached the bottom, the smallholders were growing their portfolios. Santiment charts show that the midsized traders’ accounts rose from 0.94% to 0.97%.
However, at around the 12th, when the markets reached a bottom and began recovering, the midsized investors stopped purchasing.
The Wall of Worry
According to Santiment, since March 12, there has been a wall of worry noticed in the $BAL price charts. The Wall of Worry is the ability of asset prices to overcome external, extremely negative pressures. Santiment says that the formation of the wall of worry is a good thing for Balancer.
Santiment notes that the “holders are not active, not concerned, don’t want to buy, even though they’ve been buying before.” Of course, such negativities in the market could easily lead to plunges in prices.
But, Santiment notes that even after these negativities, the prices of the $BAL token did not take a negative turn. Instead, the value of the assets has increased by over 90% since then. This asset has created a wall of worry.
Looking into the prices, $BAL has constantly risen since March 15. The token rose from $11 to around $17 end-March. The $BAL price slightly deflected, dropping to about $15. However, immediately following the downtrend, $BAL started an uptrend, leading to around $21 on April 8. The wall of worry in Balancer is exciting to watch since it indicates that the token is not primarily affected by pressure.
The Crypto Market Uptrend
There have not been many developments within the Balancer network in recent weeks. The most significant Balancer development was in August last year when the network unveiled Metastable pools, and before then in May V2 of Balancer was launched. Despite the lack of developments, $BAL is still rising.
The main reason behind the $BAL price increases is the ongoing market bulls. Since late mid-March, the crypto space has taken a bullish trend. Despite other negative factors, this market impact has been a significant force driving $BAL prices.
Source: https://crypto.news/defi-protocol-balancer-bal-mid-sized-traders-stopping/