Aethir price is set for a rally as whales accumulate ATH tokens

Aethir (ATH) price broke out of the descending trendline on Wednesday, and in the New York trading session it traded slightly down 1% at $0.069 on Thursday. On-chain data shows a negative spike in Exchange Flow Balance, and supply on exchanges is decreasing, signaling a bullish move ahead.

Aethir whales accumulate ATH tokens

Lookonchain data shows that Arthur Hayes, co-founder of BitMEX, bought 11.4 million ATH tokens worth $779,000. A few hours after this purchase, another wallet bought 28.87 million of Aethir tokens, valued at $1.95 million, from Bybot, KuCOin and OKX exchanges on Thursday.

Aethir price shows potential for a rally 

Aethir price broke out of the descending trendline (drawn by connecting multiple swing high levels from mid-July) on Wednesday. 

If the trendline breakout level at $0.065 holds as support, ATH could rally 30% from its current trading level at $0.069 to retest its July 17 high of $0.091.

The Relative Strength Index (RSI) on the daily chart has briefly slipped above the 50 neutral level, while the Awesome Oscillator (AO) is on its way to doing the same. If bulls are indeed making a comeback, then both momentum indicators must maintain their positions above their respective mean levels. Such a development would add a tailwind to the recovery rally.

ATH/USDT daily chart

Santiment's Exchange Flow Balance index shows the net movement of tokens into and out of exchanges. A positive spike indicates an inflow of tokens onto exchanges, suggesting selling pressure from investors. Conversely, a negative spike indicates an outflow of tokens from exchanges, indicating less selling pressure from investors.

In ATH's case, the Exchange Flow balance declined from -18.62 million to -210.06 million from Tuesday to Wednesday. This negative spike generally suggests a decrease in investor selling activity.

In the same period, the supply on exchanges declined from 1.12 billion to 919.87 million. This 18% decline in supply indicates that investors are moving ATH tokens off exchanges to their wallets and decreasing the selling pressure. This is a bullish development, which further denotes investor confidence in Aethir.

Aethir Exchange Flow Balance and Supply on Exchanges

Despite whale accumulation, token outflow, and decreasing exchange supply, Aethir's daily active addresses activity still needs to grow, suggesting that investors should not anticipate an immediate price rally for the token.

Aethir Daily Active Addresses chart