Potential 40% Rally for PLUME as Smart Money Accumulates

PLUME cryptocurrency appears poised for a possible 40% increase following significant accumulation by smart money investors, highlighting its growing influence in the real-world asset (RWA) sector.

Key Takeaways

PLUME accumulation by smart money, including renowned funds and active participants, surged by 56% in 30 days.
The number of PLUME holders has dramatically increased, giving the token a competitive edge over Ethereum in the RWA market.
Institutional interest grows as Grayscale considers adding PLUME to its digital asset portfolio.
A bullish reversal pattern in price charts suggests potential upward movement, with targets set at $0.13 and then $0.18.

PLUME could rally 40% as smart money ramps up accumulation

Smart Money Drives PLUME Accumulation

Recent analytics from Nansen reveal that wallets identified as holding "smart money," such as top-performing funds, early investors, and other on-chain participants, are increasing their stakes in PLUME. These wallets collectively now own 2.8 million PLUME tokens, reflecting a noteworthy 56% rise in just the last month.

Historically, when smart money increases its holdings, it's often followed by significant price changes. These investors tend to conduct thorough research and make capital allocations based on their expectations of future market conditions. This behavior can signal market movements that retail investors may closely monitor and replicate.

PLUME's Expansion in the RWA Sector

Currently, PLUME is experiencing a surge in activity, which corresponds with its rapid growth in the RWA sector. Data from RWA.xyz indicates that the number of RWA holders for PLUME has skyrocketed sixfold since June, reaching 166,892 wallets. This remarkable growth positions PLUME ahead of Ethereum, making it the blockchain with the highest number of RWA holders at this time.

PLUME represents nearly half of all RWA holders within the market. RWA holders are unique wallet addresses that possess tokenized assets reflecting real-world value on a blockchain. An increase in RWA holders typically indicates rising user engagement and growing demand for these innovative financial products.

Institutional Interest and Grayscale's Involvement

The expanding user base for PLUME reinforces its infrastructure as a major RWA-native blockchain, enhancing its attractiveness to institutional investors seeking compliant and yield-generating solutions. Signs of increased institutional interest were underscored when Grayscale, one of the largest digital currency asset managers globally, included PLUME in its list of digital assets under consideration. This list encompasses 28 different tokens across various sectors, from DeFi infrastructure to tokenized assets and Layer 1 protocols.

Although there is no guarantee of a new product launch, Grayscale’s interest indicates that it may be contemplating PLUME for a potential trust or ETF-like offering. This development signifies that institutions are beginning to recognize PLUME's significance in the RWA niche, which could further elevate investor interest and credibility.

Technical Analysis and Price Outlook

The daily chart indicates that PLUME could be on the verge of a bullish reversal. After reaching a year-to-date high of $0.209 in May, the token fell by 63%, hitting a low of $0.076 on June 22. This low established a double bottom pattern, a classic indicator of potential price reversal. This formation prompted a recovery to $0.12, followed by a consolidation phase throughout July.

Recently, price action has developed into a falling wedge pattern, commonly viewed as a bullish continuation signal, marked by progressively lower highs and lower lows. The upper trendline of this wedge is centered around the $0.100 mark, aligning with the 50-day simple moving average. A decisive break above this threshold could set off a price rally.

Momentum indicators are increasingly supporting this potential breakout. The 20-day simple moving average has crossed above the 50-day SMA, producing a "golden cross," a pattern historically related to bullish shifts. Moreover, the RSI has begun to rise after bouncing back from a low of 37, indicating that bearish momentum is subsiding while buying pressure is gradually emerging.

Should PLUME successfully break through the wedge and exceed the $0.100 resistance level, upcoming technical targets would be around $0.13—an increase of about 40% from current prices. Surpassing $0.13 could pave the way toward $0.18, a price point that has proven to be substantial resistance several times this year.

Nonetheless, this optimistic setup remains vulnerable to broader market conditions. As of now, market sentiment appears tempered, with the overall crypto market cap declining by 7% over the past 24 hours amid renewed uncertainty regarding macroeconomic policies and political developments.

At the moment, PLUME is trading at $0.096, showing no gains in the last 24 hours.

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