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Mask Network (MASK), a privacy-focused cryptocurrency token, recently experienced a significant price surge, reaching its highest level since December 2022 at $3.6766. However, this momentum was short-lived as the price sharply reversed, sliding toward $2.

On-Chain Data Highlights Whale Activity

Recent on-chain data reveals a notable increase in whale transactions for Mask Network. Data indicates that the count of whale transactions spiked to 26, marking its highest level since May 28. However, a deeper analysis shows that these whales are increasingly offloading their MASK tokens. The total supply held by whales dropped to a record low of 28.26 million tokens as of Friday. This trend of selling by large holders often signals bearish sentiment in the market.

Declining MDIA: A Bearish Indicator

Another concerning metric for MASK is the downward trend in its 180-day and 365-day Mean Dollar Invested Age (MDIA). The 180-day MDIA figure has dropped from 50 in May to 29.6, while the 365-day MDIA has fallen from 70 to 38. MDIA measures the average age of all coins weighted by their purchase price in USD. A declining MDIA typically indicates a bearish outlook as it suggests that long-term holders are selling their positions.

Negative Funding Rate Adds Pressure

The token has also faced pressure from its negative funding rate in recent days. A negative funding rate occurs when more traders are shorting an asset, forcing them to pay a small fee to bullish traders holding long positions. This dynamic further underscores the current bearish sentiment surrounding Mask Network.

Technical Analysis of Mask Network Price

From a technical perspective, MASK’s price chart reflects a volatile trading session. The token surged to $3.7020 before reversing sharply to $2.3300. This decline pushed the price below a critical support level at $2.50, which was the highest swing level recorded on April 1.

The Relative Strength Index (RSI), a key momentum indicator, has also tilted downward. After reaching a peak of 80, the RSI has fallen to 54, signaling weakening bullish momentum. If sellers maintain control, MASK could face further declines, potentially dropping below $2 and testing support near the 50-day and 200-day moving averages. In a worst-case scenario, sustained selling pressure might push the price toward $0.9475, a level last seen in April.

Key Takeaways for Investors

  • Whale activity indicates significant selling pressure, which may further impact MASK’s price negatively.
  • Declining MDIA and a negative funding rate signal bearish sentiment among traders and long-term holders.
  • Technical indicators suggest the potential for further downside if key support levels are breached.

Investors should closely monitor these metrics and consider the risks before making decisions. While the current trends point toward bearish sentiment, market conditions can shift quickly in the cryptocurrency space.

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