Reef Finance price plummets after Alameda Research discredits allegations about $20 million investment

• Reef Finance announced that Alameda Research invested $20 million.
• Unfortunately, it seems that this deal was canceled by Reef’s team which also behaved unprofessionally according to Alameda. 
• Sam Trabucco, a quantitative crypto trader for Alameda Research made a rant on Twitter against Reef.

Back on March 12, Reef Finance announced that Alameda Research invested $20 million into REEF becoming a significant stakeholder. Additionally, the announcement also stated that Alameda was a partner and collaborator with Reef Finance.

The announcement was partially not true according to Alameda

According to Sam Trabucco, a quantitative crypto trader for Alameda Research, the platform had a bigger deal than $20 million with Reef but it was canceled by Reef Finance. Trabucco also stated that Alameda is not affiliated with REEF in any way and does not endorse REEF.

Apparently, the OTC trade was not supposed to be public that fast but REEF immediately went to press to ‘brag about it’. Trabucco also stated that Alameda is still in possession of the great majority of the tokens bought, however, REEF price is down by 35% in the past 12 hours. 

Reef Finance price takes a dive but remains bullish in the long-term

Nonetheless, Alameda Research still purchased $20 million tokens although it has created some bad press for Reef. The digital asset plummeted by 35% in the past 12 hours from a high of $0.058 to a low of $0.038 but managed to defend the 100-SMA support level on the 4-hour chart.

REEF/USD 4-hour chart

REEF has already bounced by 15% since bulls held the 100-SMA level. Additionally, the number of whales holding at least 10,000,000 REEF tokens has been increasing in the past week from 17 on March 8 to 22 currently. 

REEF Holders Distribution chart

Similarly, the number of large holders with 1,000,000 to 10,000,000 tokens also increased 12 in the same time frame. This indicates that whales remain interested in REEF for the long-term. The main objective of the bulls in the short-term is to push Reef towards the previous high at $0.058. 

On the other hand, bears want to see a 4-hour candlestick close below the 100-SMA currently located at $0.038. A breakdown below this point should drive Reef Finance price towards $0.034.

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