Rollbit price likely to crash 25% as RLB whales book profits
- Rollbit price trades around two key support levels at $0.210 and $0.199.
- Decline in network activity combined with spikes in whale transaction count and network wide profit-taking hint at trend reversal.
- Due to the wide scale shedding of RLB tokens, investors can expect RLB to drop 30% to the nearest support level of $0.148.
Rollbit (RLB) price has been in an uptrend since late September and has more than doubled during that time. But as the token forms a local top, investors looking to realize profits by selling RLB could trigger a trend reversal.
Read more: Bitcoin Weekly Forecast: BTC threatens correction to $30,000 amid lack of ETF news
Rollbit price ready to reverse its uptrend
Rollbit price inflated by 130% between September 27 and November 1 and set up a local top at $0.238. Since then, RLB has shed nearly 17% and currently trades at $0.200, which is between two key barriers of $0.210 and $0.199.
A breakdown of these two key levels could trigger a deeper correction. If these support levels are flipped into resistance around the same time the Relative Strength Index (RSI) breaks below the 50 mean level, then the incoming downward movement is likely going to be steep.
The next key support level is $0.148, which is roughly 25% away from the current position of $0.199. If Rollbit price revisits the $0.210 hurdle, then the entire correction from there down to the next support would amount to a 30% drop.
RLB/USDT 1-day chart
RLB whales depart with profits
While technicals are ifs and buts and contingent on certain key levels being breached, on-chain metrics are cold, hard facts. One such on-chain metric is Network Realized Profit/Loss (NPL), which computes a daily network-level ROI based on the coin’s on-chain transaction volume. On November 1, NPL saw a spike to 14.77 million, which is the highest-level since June 2023. This suggests holders of the altcoin are offloading and taking profit.
 [11.34.14, 03 Nov, 2023]-638345934047264892.png)
RLB NPL
Further adding credence to the profit-taking is Network Growth (NG). This metric tracks the new addresses joining the Rollbit network and essentially denotes capital inflow. Based on the recent history, everytime NG has spiked and reversed immediately, it has marked local tops for Rollbit price rallies.
A similar scenario is being observed now, as NG rose by 364% between October 28 and November 1. But it quickly reversed and currently stands at 56. The decline from the top is quite steep and denotes that investors have already left the Rollbit network, aka they have booked profits and left.
 [10.50.35, 03 Nov, 2023]-638345934208775058.png)
RLB NG
Whale Transaction Count (WTC) seals the deal of a potential Rollbit price and showcases that this was whales’ footprint. This index tracks transfers worth $100,000 or more and serves as a proxy of whales’ intentions. A spike in this metric after a rally denotes that these whales are moving their holdings to book profits. On the other hand, an uptick after a drop could be attributed to dip-buying.
For Rollbit, November 1 and 2 saw two major upticks, denoting that profit-taking was indeed what was happening under the hood.
 [11.33.41, 03 Nov, 2023]-638345934410517560.png)
RLB WTC
While all signs point to trend reversal, altcoins are subject to volatility. Hence, an improved outlook for Bitcoin price could translate further upside for Rollbit as well. If that were to happen and RLB produced a higher high above $0.238, it would invalidate the bearish thesis. This move should then be followed by a higher low to keep the uptrend intact.
Such a development could see Rollbit price explore higher and tag $0.250.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
