IDEX Price Soars 50% Amid Whale Accumulation: Can It Reach $0.050?

The price of IDEX has experienced a significant rise, climbing 50% as whale investors show a renewed interest in the token. This article explores whether IDEX can sustain its gains or if a pullback is on the horizon.

Key Takeaways

IDEX surged up to $0.039, a five-week high, before settling at $0.036.
Trading volume increased nearly 550% to around $66 million.
Whale wallets holding IDEX have significantly increased, which typically attracts retail traders.
Derivative trading demand contributed to IDEX's gains, but a negative weighted funding rate suggests traders may expect a pullback.
IDEX has broken out of a descending triangle pattern, indicating potential bullish momentum.
The next target price is $0.048, with a possibility of reaching $0.050.

IDEX Price Soars 50% Amid Whale Accumulation

Main Content

IDEX's price saw an impressive increase, rising by up to 50% to reach a five-week high of $0.039 on the morning of September 1 during Asian trading hours, before leveling off at $0.036 at the time of reporting. This notable surge occurred within a high-volume trading context, with nearly $66 million traded—a dramatic jump of approximately 550% over the last four hours.

Interestingly, there were no significant triggers like new partnerships or major developments to explain this rally. Instead, the spike seems to have been driven by heightened interest from whale investors. Data from Santiment indicates that the number of whale wallets—accounts holding between 10,000 and 100 million IDEX tokens—has surged in the past two days. Such accumulation by whales often leads to increased visibility for the token and demonstrates confidence from larger investors, which can attract retail traders who often react due to fear of missing out (FOMO) and momentum-driven trends.

In addition to whale activity, demand from derivatives traders has also played a crucial role in the price rise. According to CoinGlass, the open interest in IDEX futures jumped by 185% to reach $5 million. However, the token's weighted funding rate has shifted to negative territory. This means that short sellers are compensating long positions to maintain their trades, hinting that a number of traders are anticipating a short-term dip in the price of IDEX. Nevertheless, if the IDEX price continues to climb, this imbalance could result in a short squeeze that pushes the price even higher.

Despite these positive indicators, the ongoing rally faces risks due to a lack of substantial driving factors, such as significant developments or partnerships on the horizon.

Looking at the daily chart, IDEX has formed a descending triangle pattern over the past five weeks, a formation often characterized by a flat support base and a series of declining highs. This bearish pattern typically suggests continued selling pressure and potential declines ahead. However, the situation changed when IDEX broke above the upper trendline of the triangle, which may signal the beginning of a trend reversal.

Momentum indicators back this bullish breakout, as both the MACD lines and the Relative Strength Index (RSI) indicate upward momentum. Additionally, IDEX confirmed a golden cross, where the 50-day simple moving average crossed above the 200-day moving average—a classic bullish sign that often marks the start of a longer-term upward trend.

Based on the height of the triangle structure and the strength of the breakout, the next critical target for IDEX appears to be $0.048, representing a prospective move based on the triangle breakout and suggesting a 33% increase from current prices. A decisive push past this level could lead to a rally toward the psychological resistance level of $0.050.

Conversely, if the enthusiasm surrounding whale accumulation falters, IDEX may see a decline towards $0.023, a level that has served as strong support in recent weeks.

Disclosure: This article does not serve as investment advice. All content here is for educational purposes only.