- eCash crypto price has been in a strong comeback recently.
- Most of the volume is coming from South Korea’s investors.
- This could be a pump-and-dump scheme in the making.
eCash price has been in a beast mode in the past few days. The XEC token initially went parabolic during the weekend when it jumped to a multi-month high of $0.000045. At its peak, the coin was up by more than 139% from its lowest level in June. It is now trading at $0.0000035, which is much higher than this week’s low.
South Koreans pumping the coin
eCash price has done well in the past few days as the number of investors buying the coin jumped. It is not clear why the coin soared by that much. A likely reason is that Poloniex added the XEC coin into its savings program allowing users to earn an APY of 5%.
The other important eCash news came from KuCoin, one of the biggest crypto exchange companies in the world. In a statement, the company said that it had launched XEC USDT futures, which allowed people to trade the coin with up to 30x leverage. Historically, cryptocurrency prices do well when there is a new exchange listing.
There is a major caveat for the ongoing XEC price rally. A closer look at the composition of its volume shows that most of it is coming from one exchange. According to CoinMarketCap, the volume of eCash traded in the past 24 hours stood at over $222 million.
Of this amount, $167 million came from Upbit, a South Korean crypto exchange. It was followed by Binance, which handled $29.2 million. Bithumb, another South Korean company, was the third with over $8.5 million.
Read more: A complete review of Binance.
This means that something – like a pump and dump – could be happening behind the scenes. As such, while the rally is a good thing, I feel like it could be short-lived just as I predicted in this article during the weekend.
eCash price prediction
The daily chart shows that the eCash price has gone parabolic in the past few days. As it rose, the coin managed to flip the important resistance level at $0.000032 into a support level. The coin has also moved above the 25-day and 50-day moving averages.
The red flag comes from analyzing the coin’s volume. As shown above, the volume of eCash popped on Thursday and last weekend. In between, there was no major volume, signaling that this could be a pump and dump.
Therefore, while the pump could go on for a while, there is a likelihood that the XEC price will resume the bearish trend as the coin moves to the distribution phase.
