- Railgun crypto pumped +30% on Vitalik Buterin’s $1.8M transaction.
- The token was highly concentrated on a single address, raising manipulation risks.
Railgun [RAIL] mooned 36% on Wednesday following a reported Vitalik Buterin transaction on the privacy pool and mixer.
The Ethereum [ETH] founder sent 693.9 ETH($1.83M) to the mixer, according to on-chain analysis by LookOnChain.
Source: LookOnChain/X
Will Railgun crypto keep its gains?
This wasn’t Buterin’s first transaction on the mixer that keeps transactions private from nosy on-chain sleuths. He’s a frequent Railgun user and has openly backed the platform as a staunch regulated privacy advocate.
That said, his recent transaction renewed interest in the platform’s native token. In the past two days, the altcoin surged over 40% and reclaimed the $1 value.
Source: RAIL/USDT, TradingView
The daily chart RSI showed potential for more growth because it was away from the overbought territory. But the price action also tagged a key resistance since April, as shown by the yellow trendline.
If bulls falter at the hurdle, RAIL could retrace back to the moving averages around $0.8, If so, this could be a buying opportunity for the potential rebound to $1.
However, the next bullish target would be $1.2 if bulls blast above the overhead obstacle.
Worth pointing out, however, that Bubblemaps’ visualization suggested highly centralized control of the RAIL token.
Source: Bubblemaps snapshot via Gecko Terminal
Notably, the address, Oxee6a, had a high transfer volume of 63.6% and was connected to other larger wallets.
This implied a likely massive concentration to a single user or entity that could affect other retail holders should the said entity dump its holdings.
Overall, RAIL could offer a new buying window if it retraces to $0.8, with a potential to retest $1 or zoom to $1.2-$1.4 area.
However, there appeared to be a high centralization risk worth tracking, especially for long-term holders.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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