💸 Why Retail Buying is TWT’s Double-Edged Sword

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Key Takeaways

Why did Trust Wallet Token go on a billionaires for a day spree?

The whirlwind ascent to $1.49 (from a modest $0.70) happened after months of sitting pretty. Spot and Futures markets looked like they threw a big “too many retail” party.

What’s TWT’s next move?

Spot Taker CVD seemed to favor buying, but a nosedive of 22% to $1.16 with a few chart gaps flapping around hinted at a reality check back towards the $1.00-$1.10 sweet spot.

Trust Wallet Token [TWT] turned from zero to hero in days, hitting $1.49 on Sept 19 then cooling down to $1.16 on Sept 21.

Before this breakout, TWT was all bundled up inside a symmetrical triangle for months, pacing itself like a sloth from February to early September.

The shift sent TWT’s market vibes shooting up the charts. But with retail traders at the helm, it got us all asking: Is this rocketship ride about to crash and burn?

Retail Traders Jump on the Spot and Futures Bandwagon

CryptoQuant data showed Spot retail activity hitting a peak, congregating in the “too many retail” zone like squirrels in a nut factory.

This bullhorn effect also hit Futures, where contracts saw a small army of high-frequency retail bees buzzing around the $1.20-$1.40 area.

Guess what? This suggested the breakout worked overtime with retail muscle powering both markets. Ring a bell? These setups can create a big bang before fizzling out like a busted firework.

Now, the million-dollar question is: Where are these retail traders placing their bets?

Spot Taker CVD smacked us with some clarity by turning green – buy takers were outshining sellers. That means most retail traders are basically throwing their hats in the ring with long positions.

This kind of buy party historically gives a token a quick sprint upwards. Like, howdy hoody, it’s a short-lived thrill ride.

Uh-oh, Signs of Overheating

But let’s not throw caution to the wind (or the market, in this case).

The rally left TWT with gap-toothed chart patterns, exposing it to a face-plummeting correction. Retail-driven flights often swoop down fast when it’s time to take profits or once liquidity goes MIA.

In other words, even though the bull structure greeted us with shiny horns, TWT was dancing on the edge of a steep dropback.

The next chapter for TWT depends on whether retail glee lasts or if quick-takes in selling pressure coax in those big sharks-aka institutions or whales.

If the ball stays in the buyer’s court, bulls could chase another wave. But if selling gets hyperactive, TWT might have to cozy up again towards the $1.00-$1.10 zone before finding some rhythm.

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2025-09-22 11:08